Profit for the Year Differs from Net Cash from Operations

question 77

Multiple Choice

Profit for the year differs from net cash 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 profit for the year but classified as investing or financings activities.
• D) All of the above will cause a difference between profit for the year and cash flows.

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Definitions:

Cardiac

Relating to the heart and its functions in health and disease.

Positive Feedback

A biological mechanism whereby a process enhances itself in such a way that an initial change leads to a further increase in its outcome.

Circulatory Shock

A life-threatening medical condition resulting from insufficient blood flow to the tissues of the body, causing organs to fail.

Severe Blood Loss

A critical condition that occurs when a significant amount of blood is lost from the circulatory system, leading to a drop in blood pressure and potential shock.