Identify the reason(s) why net income must be adjusted for the noncash items on the statement of cash flows .? The accrual basis of accounting is used when recording transactions and preparing the income statement. Net income reports cash paid for expenses. The accrual basis of accounting is used when recording transactions and preparing the balance sheet. Net income  includes both cash and noncash transactions.

Answer rating: 100% (QA)

Net income must be adjusted for noncash items on the statement of cash flows for several reasons Cash Flow Reporting The statement of cash flows aims ... View the full answer