Which of the following would cause net income on the accrual basis to be different from (either higher or lower than)"cash provided by operating activities" on the statement of cash flows?
A)Purchased land for cash
B)Purchased supplies for cash
C)Paid advertising expense
D)Paid dividends to stockholder

Question

Quizplus · Accepted Answer

Purchasing supplies for cash is a cash outflow for operating activities,but will not be reported as an expense until the supplies are used.Purchasing land is a cash outflow for investing activities and does not affect net income.Paying utilities expense causes equal decreases in net income and cash flows from operating activities.Paying dividends to stockholders is a cash outflow for financing activities and does not affect net income.

Which of the Following Would Cause Net Income on the Accrual