CFOs are derived by converting the income statement from an [...] basis to a [...] basis.
Answer
accrual
cash
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Subject 1. Classification of Cash Flows and Non-Cash Activities t income and changes in the working capital accounts (accounts receivable, inventory, and accounts payable). Cash flows from operating activities (CFOs) reflect the company's ability to generate sufficient cash from its continuing operations. <span>CFOs are derived by converting the income statement from an accrual basis to a cash basis. For most companies, positive operating cash flows are essential for long-run survival.
The major operating cash flows are (1) cash received from customers, (2) cash paid to
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