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Operating cash flow definition

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Operating cash flow can be a more reliable indicator of financial health than the reported net income of a business, since net income can be altered by non-cash revenue and expense transactions. It is presented within the first section of the statement of cash flows , which is part of the financial statements.

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The difference between the direct and indirect cash flow methods

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Related Courses The Interpretation of Financial Statements The Statement of Cash Flows What is the Direct Method? Under the direct method, actual cash flows are presented for items that affect cash flow.