Net cash provided by operating activities that is consistently lower than net income may imply that:
A)a dividend has not been issued in a long time.
B)the common stock should be split.
C)the company may be facing a cash shortage.
D)working capital has decreased.

Question

Quizplus · Accepted Answer

When net cash provided by operating activities is consistently lower than net income, it may indicate that the company is not generating enough cash from its operations, potentially leading to a cash shortage.

Net Cash Provided by Operating Activities That Is Consistently Lower