Which of the Following Would Cause Net Income on the Accrual

question 6

Multiple Choice

Which of the following would cause net income on the accrual basis to be different than (either higher or lower) ""cash provided by operating activities"" on the statement of cash flows?

• A) Accrued interest earned on a certificate of deposit
• B) Paid a cash dividend to the stockholders
• C) Purchased a certificate of deposit for cash
• D) Purchased land for cash

---

Definitions:

Open Market

An open market is a scenario without trade barriers, where buyers and sellers are allowed to trade goods or securities freely without restrictive regulations.

Second Purchase

The act of buying a product or service for the second time after the initial purchase.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the value of the business's reputation, brand, and other non-physical assets.

Acquisition Differential

The difference between the cost of acquiring an entity and the fair value of its identifiable net assets.