The Difference Between Net Income and Cash Flow May Be

question 213

Multiple Choice

The difference between net income and cash flow may be due to all of the following except:

• A)use of the direct method of presenting cash flows from operating activities.
• B)the company being brand new.
• C)fraudulent financial reporting.
• D)seasonal variations in a company's operating activities.

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Definitions:

Interval Scale

A scale of measurement where the intervals between values are uniform but there is no true zero point, allowing for the measurement of order and the calculation of meaningful differences between values.

Nominal Scale

A measurement scale used for categorizing variables without a quantitative value or order.

Pie Graph

A visual representation of data that divides a circle into slices to illustrate numerical proportions.

Frequency Distribution

A table or graph that displays how often different values or categories occur in a dataset.