At a meeting, one of your colleagues states, I cannot understand why we dont use the cash

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At a meeting, one of your colleagues states, “I cannot understand why we don’t use the cash flow inflows from sales revenue less the cash outflows related to our expenses to determine our net income. Wouldn’t this be the best way of calculating net income? What is problematic with this approach?”


Required
Respond to your colleague’s statement and address her questions.

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Understanding Financial Accounting

ISBN: 9781119715474

3rd Canadian Edition

Authors: Christopher D. Burnley

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