Under the accrual basis of accounting, net cash flows from operating activities on the statement of cash flows will normally be the same as net income.

Question

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Under the accrual basis of accounting, net cash flows from operating activities may be different from net income, as it includes adjustments for non-cash items such as depreciation, amortization, and changes in working capital.

Under the Accrual Basis of Accounting, Net Cash Flows from Operating