Which Statement Is Correct

question 55

Multiple Choice

Which statement is correct?

• A)If the reported net income is consistently close to or less than cash from operating activities, the company's net income or earnings are said to be of a "low quality."
• B)If net income is consistently more than cash from operating activities, the company's net income or earnings are said to be of a "high quality."
• C)One way to evaluate earnings quality is to compare the company's net income with cash from operating activities, because accrual income are less subject to managerial bias compared with cash flows .
• D)If the reported net income is consistently close to or less than cash from operating activities, the company's net income or earnings are said to be of a "high quality."

Recognize the significance and calculation of the balance of payments and its components.

Understand the factors leading to the collapse of the Bretton Woods system and its consequences on global financial systems.

Grasp the concept of managed float exchange rate systems and the role of central bank intervention.

Acknowledge the trade and balance of payments dynamics in historical and current perspectives.

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Definitions:

Revenue Streams

Various sources of income that a business receives from its normal business operations or other investments.

Bicycle Shop

A retail business specializing in the sale of bicycles, bicycle parts, and accessories, often offering repair services as well.

Accessories

Supplementary items or external additions that complement the main product offering or enhance its usability or aesthetics.

Intangible Sale

The process of selling a product or service that is not physical in nature, often involving intellectual property, software, or services.