A Firm's Cash Flows Will Differ from Net Income Each

Multiple Choice

A firm's cash flows will differ from net income each period for all of the following reasons except:

A) cash receipts from customers do not necessarily occur in the same period in which a firm recognizes revenues.
B) cash expenditures to employees, suppliers, and governments do not necessarily occur in the same period in which a firm recognizes expenses.
C) the company is sustaining losses each period.
D) cash inflows and outflows that pertain to investing and financing activities do not immediately flow through the income statement.