Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / A firm’s net income may be greater than its net cash flows because the firm Question options: sold merchandise on credit did not pay dividends deferred income taxes deducted depreciation expense
A firm’s net income may be greater than its net cash flows because the firm
Question options:
|
sold merchandise on credit |
|
|
did not pay dividends |
|
|
deferred income taxes |
|
|
deducted depreciation expense |
The answer is "sold merchandise on credit"
Reason: when goods are sold on credit they are counted in the income and sales of the year in which they are sold while cash is received later on, due to which income gets increased while the net cash flow gets decreased due to increase in current assets(debtors ).
