Most of the time, net income will be the same as cash flows from operating activities.

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting all expenses from revenue, including non-cash expenses such as depreciation and amortization. Cash flows from operating activities, on the other hand, only includes transactions involving actual cash inflows and outflows related to the company's normal operations. Therefore, net income and cash flows from operating activities may not necessarily be the same.

Most of the Time, Net Income Will Be the Same