If net cash flow from operating activities is unchanged,but net income is rising,the quality of income ratio is:
A)rising,which may signal that revenue is being recorded later and/or expenses earlier than in the past.
B)falling,which may signal that revenue is being recorded later and/or expenses earlier than in the past.
C)falling,which may signal that revenue is being recorded earlier and/or expenses later than in the past.
D)rising,which may signal that revenue is being recorded earlier and/or expenses later than in the past.

Question

Quizplus · Accepted Answer

If net income is rising while net cash flow from operating activities is unchanged, the quality of income ratio is falling, indicating that revenue might be recorded earlier or expenses later than in the past.

If Net Cash Flow from Operating Activities Is Unchanged,but Net