Which operating cash flow item is converted from the income statement by an adjustment that fully offsets the amount in the income statement?

Respuesta :

Operating cash flow (OCF) is a measurement of the amount of cash caused by a business's normal company processes.

The definition of operating cash flow

expenditure for depreciation x: While cumulative depreciation is the overall amount of wear and tear to date, depreciation expense is the amount that a company's assets are depreciated for a specific period (such as a quarter or the year). Accumulated depreciation is neither an expense, nor is it a depreciation expense.

net income: The amount earned by a person or a company after costs, allowances, and taxes is referred to as net income. Net income in company is the amount that remains after all costs, such as salaries and wages, the cost of goods or raw materials, and taxes, have been paid.

sales: A sale is a deal in which two or more parties exchange money for the buyer receiving tangible or intangible products, services, or assets. Other assets may occasionally be compensated to a seller.

cost of goods sold: The total sum of expenses incurred by your company as a direct result of the sale of goods. Depending on the nature of your enterprise, this can be items bought for resale, raw materials, packaging, and direct labor involved in creating or distributing the good.

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