Net Income from Operations Is Generally Not the Same as Cash

question 44

Short Answer

Net income from operations is generally not the same as cash provided from operations because revenues and expenses are recognized in the income statement on the ______________ basis.

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Definitions:

Required Rate Of Return

The minimum percentage return that an investor expects to receive from an investment.

Contribution Margin Ratio

Contribution Margin Ratio is a company's contribution margin expressed as a percentage of its total sales, indicating the portion of sales revenue that is not consumed by variable costs.

Throughput Time

The total time taken for a product to be completed from start to finish, including processing, waiting, and transport times.

Turnover

A measure of how quickly assets, such as inventory or investments, are converted into sales or revenue within a given period.