Which of the Following Would Cause Net Income on the Accrual

question 42

Multiple Choice

Which of the following would cause net income on the accrual basis to be different from (either higher or lower than) the amount of net cash flow for operating activities on the statement of cash flows?

• A) Purchased land for cash
• B) Purchased supplies for cash
• C) Paid advertising expense
• D) Paid dividends to stockholders

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Definitions:

Nucleus

A membrane-bound organelle found in eukaryotic cells that contains the genetic material.

Capillaries

Tiny blood vessels connecting arterioles and venules, facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrient and waste chemical substances between blood and tissues.

Erythrocytes

Red blood cells that are responsible for carrying oxygen from the lungs to the body tissues and carbon dioxide as a waste product back to the lungs.

Systemic Circuit

Circuit through which blood flows from the heart to the body tissues and back.