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Why does a difference exist between net income and net cash flow from operating activities?...

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Question

Accounting

Why does a difference exist between net income and net cash flow from operating activities?
Multiple Choice
The difference between net income and net cash flow from operating activities exists because of maintaining the inventory records using the perpetual
inventory system.
The difference between net income and net cash flow from operating activities exists because the shop is not selling all the inventory that it purchased
during the period.
The difference between net income and net cash flow from operating activities exists because operating expenses are not required be to accounted for
when determining net income.
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