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Some Analysts Focus Attention on Cash Flow from Operations, Thinking

Question 138

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Some analysts focus attention on cash flow from operations, thinking it as important as, or more important than, net income as a performance measure.Interpreting cash from operations as a measure of operating performance requires considering cash flows along two dimensions: (1) their timing and (2) their classification and disclosure in the statement and related notes.Explain.

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INTERPRETATIVE ISSUES INVOLVING THE STAT...

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