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Ford Motor Company purchases services from suppliers on account and sells its products to distributors on short-term credit. As a result, do each of these

Ford Motor Company purchases services from suppliers on account and sells its products to distributors on short-term credit. As a result, do each of these events affect net income faster than they affect net operating cash flows?

Purchase Services Sell Products
a. Yes Yes
b. Yes No
c. No Yes
d. No No

Multiple Choice

  • Option a.

  • Option b.

  • Option c.

  • Option d.

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