why isn’t the income statement a good representation of cash flow
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Question
Why isn’t the income statement a good representation of cash flow?
a. It doesn’t include inventory turnover.
b. It’s only a snapshot in time.
c. It doesn’t reflect Economic Value Added.
d. It doesn’t include interest paid on funded debt.
e. The accrual method of accounting doesn’t accurately reflect the timing of cash inflows and outflows.
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