For which of the following would net income on the accrual basis be different (either higher or lower)from "cash provided by operating activities" on the statement of cash flows?
A)Recognized depreciation expense on equipment.
B)Incurred operating expenses on account.
C)Paid interest that was accrued in a prior year.
D)All of these answer choices would affect the income statement in a different period from the statement of cash flows.

Question

Quizplus · Accepted Answer

Net income on the accrual basis includes non-cash expenses like depreciation and accounts for expenses when incurred, not when paid. Cash flows reflect actual cash transactions, so timing differences cause discrepancies.

For Which of the Following Would Net Income on the Accrual