If Net Cash Flow from Operating Activities Is Unchanged, but Net

question 58

Multiple Choice

If net cash flow from operating activities is unchanged, but net income is increasing, the quality of income ratio will:

• A) rise, which may signal that revenue is being recorded later and/or expenses earlier than in the past.
• B) fall, which may signal that revenue is being recorded later and/or expenses earlier than in the past.
• C) fall, which may signal that revenue is being recorded earlier and/or expenses later than in the past.
• D) rise, which may signal that revenue is being recorded earlier and/or expenses later than in the past.

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Definitions:

Calibration Meetings

Sessions in which managers or HR professionals discuss and align on performance standards, ratings, and development needs for employees to ensure consistency and fairness.

Performance Appraisal

The evaluation process by which an employee's job performance is assessed and documented by a manager or supervisor.

Calibration Meeting

Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors.

Appraisal System

A formal process of evaluating an employee's job performance and productivity.