Series 79: Source Of Cash

Taken from our FINRA Investment Banking Exam

Definition of the term Source Of Cash...

an increase in net cash flow. Includes additions that must be made when converting net income into net cash flow. For example, an increase in accounts payable decreases net income, but does not decrease net cash flow. The need to add it back in when converting from net income to net cash flow makes the increase in accounts payable a source of cash.

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