Cash flow from operating activities is often less stable from year to year than is the amount of net income reported on the income statement.

Name: Cash flow from operating activities is often less stable from year to year than is the amount of net income reported on the income statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash flow from operating activities is generally more stable than net income because it excludes non-cash items like depreciation and is less affected by accounting estimates and adjustments.

Cash Flow from Operating Activities Is Often Less Stable from Year