Cash provided by operating activities is generally the same as the profit reported on the income statement.

Question

Quizplus · Accepted Answer

Cash provided by operating activities and profit reported on the income statement are two different concepts. While profit takes into account non-cash items such as depreciation and amortization, cash provided by operating activities reflects actual cash transactions during the period, including changes in working capital. Therefore, the two figures can be different.

Cash Provided by Operating Activities Is Generally the Same as the Profit