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

Question

Quizplus · Accepted Answer

Net income in the income statement includes non-cash items such as depreciation and amortization, while operating cash flows only reflect cash transactions. Therefore, net income may not always directly correspond to the difference between operating cash inflows and outflows.

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