Which of the following is NOT a reason that cash flow from o

Which of the following is NOT a reason that \"cash flow from operating activities\" differs from \"net income\"?

-because the income statement is prepared using the accrual basis of accounting

-because \"cash flow from operating activities\" also contains investing and financing cash flows.

-because of non-cash expenses such as depreciation

-because revenues and expenses may be recorded in different periods than when the associated cash is received or paid

Solution

Answer is Option B (because \"cash flow from operating activities\" also contains investing and financing cash flows)

Explanation: This will never be a reason that \"cash flow from operating activities\" differs from \"net income\" because cash flow from operating expenses will not include investing and financing cash flows. All other options are a reason for difference.