Accounting Glossary: Cash Flows From Operating Activities

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Cash Flows From Operating Activities:
Cash flows from operating activities starts with a company's net income or loss for a specific period such as the year ending December 31, 2002. The net income or loss is adjusted for any non-cash items, such as, depreciation and amortization expense. Also included as cash flows from operating activities are other adjustments to reconcile net income or loss provided by operating activities. Those other adjustments are changes in current assets, other than cash, and changes in current liabilities for those accounts from the beginning of the year balances to the period end of the cash flow statement.
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Accounting Glossary: Cash Flows From Operating Activities