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Subject 2. Preparing the Cash Flow Statement d.
Net income differs from net operating cash flows for several reasons.
One reason is non-cash expenses, such as depreciation and the amortization of intangible assets. These expenses, which require no cash outlays, <span>reduce net income but do not affect net cash flows. Another reason is the many timing differences existing between the recognition of revenue and expense and the occurrence of the underlying cash flows. Finally, non-operating gains and l
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