A measure of a company's financial health found by calculating the difference between cash receipts and cash payments.

a. True
b. False

Respuesta :

The answer is true. Cash Flows From Operations (CFO) operating cash flow is calculated by taking cash from sales and subtracting cash-paid operating expenses for the period.

Operating cash flow is reported on a quarterly and annual basis on a company's cash flow statement. The statement of cash flows, like the income statement, calculated a company's financial activity over time. It demonstrates where a company's cash comes from and how it is used to fund operations and/or future investments. At a given point in time, balance sheets show what a company owns and what it owes. Income statements show how much money a business made and spent over time.

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