Apply output of ENTITY READ operation

Hellow All,

I'm Having troubles with MBO operations and will reading documentation

there is the "Immediately update the cache with Apply output of ENTITY READ operation" which i cant understand what it is.

immediatly update cache i assume it is a cache policy refresh 0  but what about the Apply output of Entity Read operation?

is it the output of the CUD operation?

source SyBooks Online

Thanks,

Laguerta