Question

100 POINTS PLEASE HELPPP An entry of (100) in net income, reported on the income statement, would be entered as (100) where else?

A. In balance sheet liabilities
B. In balance sheet assets
C. In financing cash flow
D. In operating cash flow

Answer 1

The entry of net income of (100) would be entered in option D, in the operating cash flow section of the cash flow statement.

Explanation:

The operating cash flow section of the cash flow statement reports cash inflows and outflows that result from the company's operating activities, such as revenues and expenses. Net income is an important component of operating cash flow, as it represents the profit earned by the company during a period after deducting all the expenses. When net income is negative, it is referred to as a net loss and would be entered as a negative number in the operating cash flow section of the cash flow statement.