Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 5 - Balance Sheet and Statement of Cash Flows - Review and Practice - Questions - Page 238: 23


The difference between these two amounts could be due to non-cash charges that appear in the income statements. Some of these non-cash charges could incorporate; depletion, amortization as well depreciation

Work Step by Step

Additionally, expense recorded but unpaid (e.g an increase in accounts payable) and collection of previous recorded sales on credit (i.e. now decreasing accounts payable) also would cause cash provided by operating activities to exceed net income.
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