Which One of the Following Best Explains the Combination of a High

question 91

Multiple Choice

Which one of the following best explains the combination of a high level of net income combined with a low level of cash flow during an accounting period?

• A) High depreciation expense
• B) Reduction of inventory levels
• C) Acquisition of equipment
• D)Increase in accounts payable

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Definitions:

Lease

An agreement that constitutes a grant of possession of property for a fixed term in return for the payment of rent.

Crown

represents the state or monarch in its governmental and symbolic functions, especially in Commonwealth countries.

Tenancy

A relationship between parties governed by a lease.

Right of Way

A right, recognized through long-standing practice or given permission, to use a particular path across someone else's land or property.