External users can compare the business' net cash flow from operating activities for a given year with that year's income from operations to assess how well its operating activities provide cash.

Question

Quizplus · Accepted Answer

Comparing the net cash flow from operating activities with the income from operations allows external users to assess the efficiency of a company's core business operations in generating cash, which is crucial for understanding the company's financial health and operational effectiveness.

External Users Can Compare the Business' Net Cash Flow from Operating