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Why income from the income statement is the same as cash?

Why income from the income statement is the same as cash?

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Answer #1

The income statement is the same as the cash statement. The income statement projects the performance of the company over a specific period of time. The income form the income statement is the same as cash, because of it similar to a cash flow statement , the only difference is that it takes into account the non - cash charge as the depreciation expense.

The income on the income statement is cash because it is received by the company, any accruals which is income recorded but not earned not specified on the income statement.

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