Pull & Co Reported Net Income for the Current Year

question 40

Multiple Choice

Pull & Co. reported net income for the current year. Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

• A) Cash dividends were paid to stockholders during the year.
• B) Depreciation expense was recorded for the year.
• C) A bank loan was repaid during the year.
• D) Equipment was purchased for cash during the year.

---

Definitions:

Inducements

Incentives or rewards offered to employees or other parties to motivate desired behaviors or actions.

Attribution

The process of explaining the causes or reasons behind behaviors or events, often referring to the assessment of responsibility or blame.

Explaining Events

The process of providing reasons or causes for occurrences, aiming to make sense of why things happen in the way they do.

Psychological Contract

The unwritten and unspoken expectations, beliefs, and assumptions about the reciprocal obligations between employees and their employer.