A company's operating cash inflows less operating cash outflows generally equals the reported amount of net income in the income statement.

Name: A company's operating cash inflows less operating cash outflows generally equals the reported amount of net income in the income statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net operating cash flows will not necessarily equal net income even when using cash-basis accounting, as certain non-cash items such as depreciation and amortization can impact net income but not cash flows.

A Company's Operating Cash Inflows Less Operating Cash Outflows Generally