Explanations a. Aggregate accrual-basis net income from the income statement is converted to cash generated from operating activities by applying a series of adjustments or reconciling items to the net income figure. b. A series of adjustments or reconciling items are made to the net income figure to arrive at the actual cash in bank. c. Is preferred by the FASB, but is the least popular in practice at this time. d. Is preferred by both GAAP and FASB and has always been the least popular in practice. Explanations a. Aggregate accrual-basis net income from the income statement is converted to cash generated from operating activities by applying a series of adjustments or reconciling items to the net income figure. b. A series of adjustments or reconciling items are made to the net income figure to arrive at the actual cash in bank. c. Is preferred by the FASB, but is the least popular in practice at this time. d. Is preferred by both GAAP and FASB and has always been the least popular in practice