On a statement of cash flows of a healthy company, net income would ordinarily be:
A)less than depreciation expense.
B)more than depreciation expense.
C)greater than Net cash provided by operating activities.
D)less than Net cash provided by operating activities.

Question

Quizplus · Accepted Answer

Net cash provided by operating activities is typically greater than net income because it includes non-cash expenses like depreciation and changes in working capital.

On a Statement of Cash Flows of a Healthy Company