Which of the following could cause accrual-based profits to be higher than net cash flows from operating activities?Group of answer choicesDepreciation expense has been included in the accrual-based profit.Not all of the cash has been received for sales made in the accounting period.Some expenses for the period have not been paid.None of the options is true.

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.

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.

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.

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.

The following list contains activities that may be added or subtracted from net profit when reconciling to cash flows from operating activities. Indicate whether each activity is added, subtracted or irrelevant.Increase in furniture and fixtures  Answer 1 Question 1Decrease in accrued wages Answer 2 Question 1Loss on sale of equipment Answer 3 Question 1Proceeds from borrowings Answer 4 Question 1Gain on sale of investments Answer 5 Question 1Increase in inventory Answer 6 Question 1Decrease in prepaid rent expenses  Answer 7 Question 1Amortization expenses Answer 8 Question 1