Net Income Differs from Net Cash Flows from Operations Because

question 97

Multiple Choice

Net income differs from net cash flows from operations because of all the following except:

• A) Non-cash expenses such as depreciation.
• B) Timing differences between recognizing revenue and expenses and their cash flows.
• C) Gains and losses included in net income but classified as investing or financings activities.
• D) Non-cash expenses such as depreciation, timing differences between recognizing revenue and expenses and their cash flows, and gains and losses included in net income but classified as investing or financings activities will all will cause a difference between net income and cash flows.

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Definitions:

Norm-Referenced Appraisals

Employee evaluation method comparing an individual's performance against that of their peers, rather than on a set of absolute criteria.

Straight-Ranking

A method of performance evaluation where employees are compared to each other and ranked in a simple list format.

Forced Distribution

A performance management system where employee evaluations are distributed along a bell curve, forcing rankings among an employee population.

Performance Feedback

The process where an individual's work performance is assessed and communicated back to them, usually by a supervisor or peer, to improve and develop their professional capabilities.