Answer:
The correct answer to this question is D) where it adds all the non cash entries related to a firm's operating activities.
Explanation:
A cash flow statement is a financial statement which shows how cash and cash equivalent are affected by change in the balance sheet accounts and income statements accounts, and cash flow shows this affect on cash and equivalent by breaking down the cash flow statement analysis in to operating , investing and financing activities.
The way in which operating activity now helps in adjusting the net income from balance sheet is by adding all the non cash entries, which are related to company's operating activities.
