Which of the Following Transactions Increases the Quality of Income

question 30

Multiple Choice

Which of the following transactions increases the quality of income ratio?

• A)The accrual of revenue.
• B)The accrual of an expense.
• C)The cash payment of an account payable.
• D)The payment of a cash dividenD.The quality of income ratio is cash flow from operating activities divided by net income.Accrued expenses are incurred but not paid.They reduce net income but do not reduce cash flow.The decrease in net income (the denominator) therefore increases the quality of income ratio.

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Definitions:

Reciprocation Of Liking

Liking those who like us.

Attracted

describes a feeling or condition in which an individual is drawn toward another person, object, or idea, often due to qualities that are found appealing or desirable.

Long-Term Maintenance Attraction

Degree of liking or positive feelings that motivate us to maintain or escalate a relationship.

Attitude Similarity

The degree to which individuals share the same viewpoints, opinions, or evaluations about a subject, often influencing attraction and relationship dynamics.