There Is Usually a Difference Between the Net Income Reported

question 58

True/False

There is usually a difference between the net income reported on the income statement and the net cash from operating activities shown on the statement of cash flows.

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Definitions:

Revenue Recognized

The process of recording income when it is earned and realized or realizable, according to the principles of accounting.

Capitalizing

The accounting practice of recognizing a cost as a long-term asset rather than an expense.

Amortizing

The process of gradually paying off a debt over a predetermined period of time through regular payments.

Unrestricted Contribution

Donations or funds given to an organization without any conditions or limitations on their use.