In order to determine the cash flows from day-to-day operations, the firm must convert the company's income statement from a cash basis to an accrual basis.

Name: In order to determine the cash flows from day-to-day operations, the firm must convert the company's income statement from a cash basis to an accrual basis.
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Question

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The income statement is already prepared on the accrual basis. The company's cash flow statement is prepared separately to determine the cash flows from day-to-day operations.

In Order to Determine the Cash Flows from Day-To-Day Operations