6 The income statement A measures performance for one specif

6. The income statement: A. measures performance for one specific day. B. ignores any income other than operating revenues. C. excludes deferred tax expense. D. includes noncash expenses. 7. One of the reasons why cash flow analysis is popular is because: A. cash flows are more subjective than net income. cash flows are strictly defined by generally accepted accounting principles (GAAP) B. C. it is difficult to manipulate, or spin the cash flow:s D. operating cash flows are found on the income statement 8. An increase in which one of the following will cause the operating cash flow to decrease? A. change in the amount of long-term debt B. changes in the amount of net fixed capital C. net working capital D. depreciation

Solution

Answer 6:

D. includes noncash expenses.

Answer 7:

C. it is difficult to manipulate, or spin the cash flows.

Answer 8:

C. net working capital