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Describe the general relationship between net income and net cash flows from operating activities for the firm?
Wiki User
∙ 14y ago
Net income is the change in owners represents the change in owners' equity during a period. This does not include the effects of any additional investments or withdrawals by the owners. Cash flow is the movement of cash in or out of a business, project of financial product.
Wiki User
∙ 14y ago
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What is the difference between operating revenue and non operating revenue?
Operating revenue is that revenue which is earned by basic operating activity of business while non operating profit is earned from other activities like purchases of marketable securities etc.
What is the difference between the direct method and indirect method?
The main difference between the direct method and the indirect method involves the cash flows from operating activities. Under the direct method, the cash flows from operating activities will include the amounts for lines such as cash from customers and cash paid to suppliers. In contrast, the indirect method will show net income followed by the adjustments needed to convert the total net income to the cash amount from operating activities.
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Explain the difference between net income and cash flow operating activities?
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