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Denise Norris
on Oct 15, 2024

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Cash flows are essentially the same as net income because they are both measured using accrual accounting principles.

Cash Flows

The complete sum of funds flowing into and leaving a business, significantly impacting its liquidity.

Net Income

is the total earnings of a company after all expenses and taxes have been subtracted from total revenue; a key indicator of financial health.

Accrual Accounting

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

  • Acknowledge the significance of cash flow figures and the timing of these flows in the planning and analysis of operations.
  • Comprehend how transactions and events influence the cash balance at the end of a period.
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Jadon JamesOct 15, 2024
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