A Company Reported Net Income for the Current Year

question 72

Multiple Choice

A company reported net income for the current year. Which of the following business transactions would cause its cash from operating activities to be higher than its 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.

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Definitions:

Bone Density

The measurement of the amount of mineral matter per square centimeter of bones, indicating bone strength and risk for osteoporosis.

Basal Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.

Lung Capacity

The maximum amount of air the lungs can hold, important for respiratory health and physical performance.

Presbyopia

A condition associated with aging in which the eye's lens loses flexibility, resulting in difficulty focusing on close objects.