Taxes,payment patterns,and reporting considerations,as well as credit sales and non-cash costs,are reasons why operating cash flows can differ from accounting profits.

Question

Quizplus · Accepted Answer

Operating cash flows represent the actual inflows and outflows of cash in a business, taking into account factors such as taxes and payment patterns, while accounting profits are based on accrual accounting and may include non-cash costs such as depreciation. Therefore, the two can differ.

Taxes,payment Patterns,and Reporting Considerations,as Well as Credit Sales and Non-Cash