Net income is not cash flow.

Name: Net income is not cash flow.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net income is the profit earned by a company after deducting expenses and taxes, but it includes non-cash items such as depreciation and amortization. Cash flow, on the other hand, refers to the actual flow of cash in and out of a business and takes into account the timing of cash receipts and payments. Therefore, net income and cash flow are not interchangeable concepts.

Net Income Is Not Cash Flow