Consider how each of the transactions listed below affect net income reported on the income statement and the net cash flows from operating activities reported on the statement of cash flows.Which transaction(s)would affect the income statement in a different period from the statement of cash flows?
A)Recognized depreciation expense on equipment.
B)Incurred operating expenses on account.
C)Paid interest that was accrued in a prior year.
D)All of these answer choices would affect the income statement in a different period from the statement of cash flows.

Question

Quizplus · Accepted Answer

Recognizing depreciation expense reduces net income,but does not affect cash flows from operating activities.Incurring operating expenses on account also reduces net income,but does not affect cash flows from operating activities.Paying interest that was accrued in a prior year will reduce cash flows from operating activities,but will not affect net income.

Consider How Each of the Transactions Listed Below Affect Net