Which of the Following Is Correct Concerning the Net Income

question 23

Multiple Choice

Which of the following is correct concerning the net income and cash flow of a firm?

• A) The primary difference between the net income and the operating cash flow of a firm is taxes
• B) Analysis rely on the net income of a firm and therefore ignore the cash flows
• C) High quality earnings exist when the earnings per share is similar in value to the cash flow per share
• D) The net income of a firm is unaffected by the depreciation method selected
• E) The earnings per share will usually equal the net income per share for most firm

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