Net cash provided by operations represents
A)net income converted to a cash basis.
B)the net increase in cash and cash equivalents for a period.
C)the cash provided by selling inventory to customers.
D)a measure of profitability.

Question

Quizplus · Accepted Answer

Net cash provided by operations represents the amount of cash generated from the company's operating activities, which is usually different from the net income due to non-cash expenses such as depreciation, changes in working capital, and other adjustments. Therefore, it is the net income converted to a cash basis.

Net Cash Provided by Operations Represents