Net Income for a Particular Period Does Not Equal Cash

question 48

Multiple Choice

Net income for a particular period does not equal cash flow from operations because

• A)most firms use the accrual basis of accounting to measure operating performance.
• B)most firms typically recognize revenue at the time of sale, independent of when they receive the cash from the sale.
• C)some firms receive cash before providing services and recognizing revenues.
• D)some firms receive cash after they have provided goods and recognized revenues.
• E)all of the above

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Definitions:

Communication Skills

The ability to convey or share ideas and feelings effectively through verbal and non-verbal methods.

Employers Consider

Factors or criteria that employers evaluate when making decisions about hiring, policy-making, or operational changes.

Listening to Facts

The process of attentively hearing and understanding factual information being communicated.

Rather Than Feelings

A preference for logical or factual considerations over emotional responses.