In any given period, a company's cash flow from operating activities is directly correlated with its net income.

Question

Quizplus · Accepted Answer

Cash flow from operating activities and net income are related but not directly correlated. Net income includes non-cash expenses such as depreciation, while cash flow from operating activities adjusts for these non-cash items and changes in working capital, leading to potential differences between the two.

In Any Given Period, a Company's Cash Flow from Operating