Austin Financial Recently Announced That Its Net Income Increased Sharply

question 123

Multiple Choice

Austin Financial recently announced that its net income increased sharply from the previous year,yet its net cash provided from operations declined.Which of the following could explain this performance?

• A) The company's dividend payment to common stockholders declined.
• B) The company's expenditures on fixed assets declined.
• C) The company's cost of goods sold increased.
• D) The company's depreciation expense declined.
• E) The company's interest expense increased.

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Definitions:

Scientific Management Model

A management theory focusing on improving economic efficiency, especially labor productivity, through scientific methods.

Optimal Way

The most efficient or effective method to achieve a specific goal or outcome.

Hawthorne Effect

The phenomenon where individuals modify an aspect of their behavior in response to their awareness of being observed.

Study Participation

The involvement of individuals as subjects in research to gather information and data for the purpose of advancing knowledge.