Cigna Corporation's 2010 Net Income Is Smaller Than Net Cash

question 174

Multiple Choice

Cigna Corporation's 2010 net income is smaller than net cash flow from operating activities. Which of the following would not be an explanation of why net income is smaller than net cash flow from operating activities?

• A) Cigna paid dividends to shareholders during 2010.
• B) Cigna's accounts payable increased during 2010.
• C) Cigna recognized depreciation expense in 2010.
• D) Cigna sold equipment at a loss in 2010.

---

Definitions:

Perceptual Illusion

An incorrect perception of a sensory experience, where what we perceive differs from objective reality.

Misleading Cues

Incorrect signals or information that can lead to false assumptions or interpretations.

Stroboscopic

Referring to a visual phenomenon where continuous motion is represented by a series of short or intermittent light pulses, creating the illusion of movement.

Similarity Principle

A concept in social psychology that suggests individuals are more likely to form relationships with people who are similar to them in terms of interests, beliefs, and background.