The Nelson Corporation reported net income in excess of its net cash flow from operating activities for the current year.An explanation for this may be:
A)A loss on the sale of equipment in the current year.
B)An increase in accounts payable during the year.
C)Depreciation expense recognized for the year.
D)A gain on the sale of investments during the year.

Question

Quizplus · Accepted Answer

A gain on the sale of investments increases net income but does not affect cash flow from operating activities, leading to net income being higher than net cash flow from operations.

The Nelson Corporation Reported Net Income in Excess of Its