Which of the following could cause accrual-based profits to be higher than net cash flows from operating activities?Group of answer choicesNone of the options is true.Some expenses for the period have not been paid.Not all of the cash has been received for sales made in the accounting period.Depreciation expense has been included in the accrual-based profit.

4.7.Indicate whether each of the following items would result in net cash flowfrom operating activities being higher (H) or lower (L) than net income.1.Decrease in accounts payable.2.Depreciation expense.3.Decrease in inventory.4.Gain on sale of assets.5.Increase in accounts receivable.6.Increase in deferred tax liabilities.7.Decrease in accrued liabilities.8.Increase in prepaid expenses.9.Increase in deferred revenue.10.Decrease in interest receivable.

Accounting profits and cash flows are:Group of answer choicesgenerally the same since accounting profits reflect when the cash flows are received.generally not the same since accrual accounting allows for revenue recognition separate from the receipt of cash flows.generally not the same because cash inflows occur before revenue recognition.generally the same since they reflect current laws and accounting standards.

An increase in Depreciation will contribute to higher Cash Flow from Operating Activitiestruefalse

Which of these causes a difference between the profit in the income statement and the net cash increase in the statement of cash flows?All of the options listed.Credit purchases not yet paid.Depreciation.Prepaid insurance.

Which of the following statements is correct? Group of answer choices Adjusting entries are not necessary if the trial balance debit and credit columns balances are equal. Profit will always be greater under the cash basis of accounting than under the accrual basis of accounting. Accrued revenues are revenues that have been received but not yet earned. Asset prepayments become expenses when they expire.