On a Reconciliation of Net Income to Cash from Operations

question 66

Multiple Choice

On a reconciliation of net income to cash from operations, depreciation is treated as an adjustment to net income because depreciation:

• A) is a direct outflow of cash.
• B) reduces net income but does not involve an outflow of cash.
• C) reduces net income and involves an outflow of cash.
• D) is an outflow of cash to a reserve account for replacement of assets.

---

Definitions:

Economically Successful

A state of achieving significant financial prosperity or wealth, often linked to effective management of resources and investments.

Educationally Successful

Achieving significant accomplishments or obtaining high levels of performance in educational settings, often measured by grades, graduation, or other academic achievements.

Acculturation

The process of adopting the cultural traits or social patterns of another group, especially by contact and exchange.

Assessment

The process of evaluating or analyzing something to determine its nature, quality, or significance.