A firm's net income as reported on its income statement is known as _____.
A) operating cash flow
B) net cash flow
C) noncash income
D) accounting profit
E) net sales

Question

Quizplus · Accepted Answer

Net income is also known as accounting profit, which is the amount of revenue that exceeds expenses on the income statement. Choice A is incorrect because operating cash flow is a measure of cash inflow and outflow from a company's operations, not net income. Choice B is incorrect because net cash flow is the difference between cash inflows and outflows, not net income. Choice C is incorrect because noncash income refers to revenue that is not received in the form of cash, such as depreciation. Choice E is incorrect because net sales is the amount of revenue generated from sales, not net income.

A Firm's Net Income as Reported on Its Income Statement