Operating Income Is Equal to the Cash Flow from Operations

question 128

True/False

Operating income is equal to the cash flow from operations on a cash flow statement.

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Definitions:

Fair Value Through Other Comprehensive Income

An accounting treatment for certain investments that are measured at their fair value with changes recognized in other comprehensive income until the investment is sold or disposed of.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Other Comprehensive Income

Components of comprehensive income not included in net income, reflecting gains and losses that have not been realized through the income statement.

Journal Entries

The method by which financial transactions are recorded in an accounting system, involving a debit to one or more accounts and a credit to one or more accounts.