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Net income differs from net operating cash flows for several reasons. One reason is noncash expenses, such as depreciation and the amortization of intangible assets. These expenses, 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, nonoperating 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.
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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.
What is the difference between a partnership and an operating agreement?
The difference between a partnership agreement and an operating agreement is that in the partnership agreement is set up for all owners or partners to be responsible for the company. The operating agreements differs in the fact that the agreement is for the person or people in charge of the operating requirements for the company.
Difference between capital income and revenue income?
Capital income is that income which is recevied or generated from sale of capital assets like shares or gold etc. Revenue income is that income which is generated from basic business operating activities.
Explain the differences between impatient and patient capital?
International Financial Management is operating outside of the domestic boarding.
What is the difference between operating expenses and non-operating expenses?
An interview with a company's operations managers and a review of its commercial ambitions often give investors a clear idea of the firm's operating activities.
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.
Difference between system software and operating system?
difference between operating system and system software?
How do you explain the difference between the vassals and serfs?
Explain the difference between the vassals and the serfs
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.
What is the difference between Cash and cash equivalents and Cash provided by operating activities?
Difference between cash and cash equivalent is that cash equivalent is not cash like other cash but it is so liquid that it can be converted to cash immediately when required like marketable securities while cash provided from operating activities means cash generated by selling goods to customers.
Explain the difference between young and mature mountains?
Explain the difference between young and mature mountains?
What is the difference between net cash flows and operating cash flows?
Net cash flow means net of cash inflow and outflows while operating cash flows means cash flows generated by operating activities of business.
Explain the difference between a planner and a scheduler?
A planner is a calendar or diary with which you can roughly plan the activities which you will undergo but a scheduler is a calendar or diary that you maintain so as to plan the activities accurately on time.
What is the difference between describe and explain?
Describe is what it is and explain is why it is as it is
What is difference between explain and describe?
Describe is what it is and explain is why it is as it is
Explain the difference between a cash and credit transaction for purchass and sales?
explain the difference between cash and credit transaction
