Which of the Following Is a Way That the Operating

Multiple Choice

Which of the following is a way that the Operating Activity section of the statement of cash flows adjusts Net Income from the balance sheet?

A) It adds the cash that flows from investors to the firm.
B) It adds all non-cash entries related to the firm's operating activities.
C) It removes the cash used for investment purposes.
D) It subtracts all expenses and costs related to the firm's operating activities.