Which of the following would cause net income on the accrual basis to be different than (either higher or lower than)cash provided by operating activities on the statement of cash flows?
A) acquiring $10,000 cash from the owners
B) incurring operating expenses on account
C) providing services to a customer for cash
D) purchasing land for cash

Question

Quizplus · Accepted Answer

Incurring operating expenses on account affects net income immediately but does not affect cash flow until the expenses are paid.

Which of the Following Would Cause Net Income on the Accrual