Net income differs from net operating cash flows because [...] enter into the determination of net income, but the related cash flows are classified as investing or financing activities, not operating activities.
Answer
non-operating gains and losses
Question
Net income differs from net operating cash flows because [...] enter into the determination of net income, but the related cash flows are classified as investing or financing activities, not operating activities.
Answer
?
Question
Net income differs from net operating cash flows because [...] enter into the determination of net income, but the related cash flows are classified as investing or financing activities, not operating activities.
Answer
non-operating gains and losses
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Subject 2. Preparing the Cash Flow Statement which require no cash outlays, 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, <span>non-operating gains and losses enter into the determination of net income, but the related cash flows are classified as investing or financing activities, not operating activities.
There are two methods of converting the income statement from an accrual basis to a cash basis. Companies can use either the direct or the indirect method for reporting the
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