Remember that per GAAP we use accrual accounting on the income statement. This means that net income is not the same as cash. Revenue is recorded when it is earned, not necessarily when it is received. And expenses are recorded when they are incurred, which is not always the same time the cash is paid. Therefore, we have to make adjustments to income to get to cash flow. Can you give some examples of recording expenses as they are incurred but before they are paid? Or can you give an example of recording revenue as it is earned but before or after it is paid?