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."

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Definitions:

Social-Cognitive Perspective

A psychological viewpoint that focuses on how people process, store, and apply information about other people and social situations.

Hypnosis

A trance-like state of focused attention, heightened suggestibility, and diminished peripheral awareness, often induced by a hypnotic induction technique.

Altered State

A condition of mind distinctly different from the normal waking state, induced by various means such as meditation, drugs, hypnosis, or extreme physical exertion.

Consciousness

The condition of being conscious and capable of contemplating one's own being, feelings, ideas, and surroundings.