Keep in mind that a company’s income statements are done on an accrual basis, so only earned revenue ... activities that don’t affect a business’s operating cash flow. Depreciation, for example, isn’t ...

Examples include office salaries ... the accrual basis of accounting used to prepare the income statement and balance sheet back to a cash basis. This may sound redundant, but it's necessary.

Fact checked by Ariel Courage Reviewed by Somer Anderson The cash flow statement and the income statement are integral parts ...