Why Is There a Difference Between Earnings and Cash Flows

question 20

Multiple Choice

Why is there a difference between earnings and cash flows?

• A)Because of accruals and non-cash items.
• B)Because of the difference in accounting methods.
• C)Because cash flow statements and income statements follow different GAAP.
• D)Because expenses are not accounted for the same way as revenues.

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Definitions:

Marketing Program

A strategic plan that combines all marketing goals and tactics into one comprehensive, cohesive approach aimed at promoting a product or service.

Evaluation Phase

A stage in a project, campaign, or experiment where outcomes are assessed to determine their effectiveness or value.

Strategic Marketing Process

The strategic marketing process involves planning, implementing, and evaluating actions aimed at creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Planning Gap

The difference between a company's current performance and its desired performance or goals.