Discrepancies between Income Statement and Cash Flow Statement that are not caused by Inventory?

Apart from inventory, there are several other common factors that can create discrepancies between the income statement and the cash on hand. Some of these discrepancies include:

1. Accounts Receivable: Accounts receivable represents the amount of revenue that has been recognized on the income statement but has not yet been received in cash. If customers have not paid their outstanding invoices, it can result in a difference between revenue reported on the income statement and the actual cash received.

2. Accounts Payable: Accounts payable represents the expenses that have been recognized on the income statement but have not yet been paid. If the company has outstanding bills or invoices that have not been settled, it can create a difference between the expenses reported on the income statement and the cash outflows.

3. Accruals: Accruals are expenses that have been incurred but not yet paid or revenue that has been earned but not yet received. These accruals, such as accrued salaries, accrued interest, or accrued revenue, can lead to differences between the income statement and cash on hand.

4. Non-cash Items: Non-cash items, such as depreciation, amortization, and stock-based compensation, are recorded on the income statement but do not involve actual cash flows. These items can create differences between the income statement and cash on hand since they represent non-cash expenses or gains.

5. Timing Differences: Timing differences between recognizing revenue or expenses and the actual cash inflows or outflows can also create discrepancies. For example, revenue recognition may occur before receiving cash, or expenses may be recognized before making cash payments.

6. Operating Activities: Various operating activities, such as changes in working capital, investments in assets, or changes in liabilities, can affect the cash flow statement differently than the income statement. These differences can lead to disparities between the income statement and the cash on hand.

It's important to consider that the income statement captures the financial performance over a specific period, while the cash flow statement reflects the actual cash inflows and outflows during that period. Therefore, differences in timing, accruals, and non-cash items can contribute to discrepancies between the two statements.