Which of the following would cause net income on the accrual basis to be different from (either higher or lower than) the amount of net cash flow for 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 stockholders

Question

Quizplus · Accepted Answer

Purchasing supplies for cash affects net income on the accrual basis differently from the cash flow statement because it involves recording an expense when the supplies are used, not when they are purchased. This can lead to a difference between net income (accrual basis) and net cash flow from operating activities.

Which of the Following Would Cause Net Income on the Accrual