Asked by
Savanah Archer
on Nov 13, 2024Verified
Rarely will the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.
Operating Activities
Activities directly related to the operation of the business, including production, sales, and delivery of the company's product.
Net Income
The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; often referred to as the "bottom line."
- Comprehend the implications of cash flow information for financial analysis.
Verified Answer
AF
Learning Objectives
- Comprehend the implications of cash flow information for financial analysis.