Cigna Corporation's 2018 net income is smaller than net cash flow from operating activities.Which of the following would not be an explanation of why net income is smaller than net cash flow from operating activities?
A)Cigna paid dividends to shareholders during 2018.
B)Cigna's accounts payable increased during 2018.
C)Cigna recognized depreciation expense in 2018.
D)Cigna sold equipment at a loss in 2018.

Question

Quizplus · Accepted Answer

Dividends paid to shareholders are a financing activity, not an operating activity, and do not affect the comparison between net income and net cash flow from operating activities.

Cigna Corporation's 2018 Net Income Is Smaller Than Net Cash