Accrual accounting net income can differ from operating cash flows for all of the following reasons except
A)dividend declaration and payment dates.
B)useful lives of assets.
C)future pension and healthcare benefits.
D)estimates of uncollectible accounts.

Question

Quizplus · Accepted Answer

Dividend declaration and payment dates do not affect the difference between accrual accounting net income and operating cash flows. The other options all involve differences between the timing of revenue recognition and the actual receipt of cash, which affect operating cash flows.

Accrual Accounting Net Income Can Differ from Operating Cash Flows