On a statement of cash flows of a healthy company,net income would ordinarily be:
A)less than depreciation expense.
B)more than depreciation expense.
C)greater than Net Cash Provided by Operating Activities.
D)less than Net Cash Provided by Operating Activities.

Question

Quizplus · Accepted Answer

Net income is typically less than Net Cash Provided by Operating Activities because non-cash expenses like depreciation are added back to net income in the operating activities section of the cash flow statement.

On a Statement of Cash Flows of a Healthy Company,net