Which of the Following Would Cause Net Income on the Accrual

question 86

Multiple Choice

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

• A)Purchased land for cash
• B)Purchased supplies for cash
• C)Paid advertising expense
• D)Paid dividends to stockholder

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Definitions:

Salvage Value

The anticipated worth of an asset at the conclusion of its effective life.

Service Life

The estimated use period or duration over which an asset is expected to be economically usable by one or more users, with proper maintenance and repairs.

Operational Use

The application or employment of resources, processes, and procedures to perform its intended functions or tasks within a business.

Units Of Time

Standardized segments of time used for measuring duration, such as seconds, minutes, hours, days, months, and years.