In the accounting statement of cash flows,which one of these is calculated by adding back noncash expenses to net income and adjusting for changes in current assets and liabilities?
A)Cash flow from investing activities
B)Cash flow from financing activities
C)Net working capital
D)Cash flow from operations
E)Cash flow to investors

Question

Quizplus · Accepted Answer

Cash flow from operations is calculated by adding back noncash expenses (such as depreciation) to net income and adjusting for changes in current assets and liabilities (such as accounts receivable and accounts payable). This section of the statement of cash flows reflects the cash generated or used in the day-to-day operations of the business.

In the Accounting Statement of Cash Flows,which One of These