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Cash flow from operations represents the "cash" income from the company's business operations.

True
False

User Cguedel
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Final answer:

The correct answer is True. Cash flow from operations represents the 'cash' income from the company's business operations.

Step-by-step explanation:

Cash flow from operations represents the 'cash' income from the company's business operations.

True

Cash flow from operations is a key financial metric that measures the amount of cash generated by a company's core business activities. It includes cash inflows from sales revenue and cash outflows from operating expenses.

For example, if a company sells $100,000 worth of products and incurs $70,000 in operating expenses, its cash flow from operations would be $30,000. This cash flow represents the company's ability to generate cash from its day-to-day operations and is an important indicator of its financial health and sustainability.

User Mrosiak
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