Aubey Aircraft Recently Announced That Its Net Income Increased Sharply

question 51

Multiple Choice

Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from operations declined.Which of the following could explain this performance?

• A) The company's operating income declined.
• B) The company's expenditures on fixed assets declined.
• C) The company's cost of goods sold increased.
• D) The company's depreciation and amortization expenses declined.
• E) The company's interest expense increased.

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Definitions:

Resource Depletion

The consumption of finite or non-renewable natural resources, leading to a reduction in their availability over time.

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.

Relative to Demand

This refers to how the availability or desire for a product or service is influenced by consumer demand.

Price Controls

Government-imposed limitations on the prices that can be charged for goods and services in a market.