A Company Reported Net Income for the Current Year

question 72

Multiple Choice

A company reported net income for the current year. Which of the following business transactions would cause its cash from operating activities to be higher than its net income?

• A)Cash dividends were paid to stockholders during the year.
• B)Depreciation expense was recorded for the year.
• C)A bank loan was repaid during the year.
• D)Equipment was purchased for cash during the year.

---

Definitions:

Task Significance

The degree to which a job has a substantial impact on the lives or work of other people within or outside the organization.

Performance Feedback

Information provided to individuals or groups regarding their performance or behavior with the intention to improve their effectiveness or efficiency.

Developmental Feedback

Constructive feedback provided to individuals to support their professional growth and development.

Subordinates' Behavior

The actions and interactions of employees directed by individuals in higher positions within the organizational hierarchy.