During 2014, Boogle Reported Net Income of $785 Million and Net

question 31

Multiple Choice

During 2014, Boogle reported net income of $785 million and net cash inflow from operating activities of $1,196 million. During 2013, Boogle's net income was $563 million and net cash inflow from operations was $1,237 million. Which of the following is incorrect about the quality of income ratios?

• A) In 2013 the ratio was 2.2 and in 2014 it was 1.5.
• B) The ratio in 2013 was better than the ratio in 2014.
• C)Boogle's quality of income ratios indicate poor performance because net income is less than cash flow.
• D)The ratio in both years shows the company's ability to generate positive cash flow from its operating activities.

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Definitions:

Response Maintenance

A type of generalization that occurs when a behavior is performed following the withdrawal of an intervention. It is measured in terms of the strength or durability of learned behaviors once the initial contingencies are removed.

Generalization

The process in which behaviors learned in one context transfer to other contexts that are perceived as similar, extending the reach of learned responses beyond the original settings.

Social Validation

The process of seeking or obtaining approval or affirmation from others in one's social environment.

Social Reciprocity

The mutual exchange of social behavior, such as cooperation or communication, between individuals or groups.