Net income differs from net cash flows from operations because of all the following except:
A) Non-cash expenses such as depreciation.
B) Timing differences between recognizing revenue and expenses and their cash flows.
C) Gains and losses included in net income but classified as investing or financings activities.
D) Non-cash expenses such as depreciation, timing differences between recognizing revenue and expenses and their cash flows, and gains and losses included in net income but classified as investing or financings activities will all will cause a difference between net income and cash flows.

Question

Quizplus · Accepted Answer

Non-cash expenses such as depreciation and timing differences between recognizing revenue and expenses and their cash flows will cause a difference between net income and cash flows from operations. Gains and losses included in net income but classified as investing or financings activities will also cause a difference between net income and net cash flows from operations. Therefore, all options listed in choice D will cause a difference between net income and net cash flows from operations.

Net Income Differs from Net Cash Flows from Operations Because