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If cash flows differ significantly from GAAP net income: what is the correct answer and why Answers: The company may have miscalculated operating cash flows

If cash flows differ significantly from GAAP net income: what is the correct answer and why

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The company may have miscalculated operating cash flows or GAAP accruals

The firm may have low-quality earnings that do not provide a meaningful signal of performance

The firm may be a mature company that is returning money to shareholders instead of investing in new projects

The net change in cash on the cash flow statement may not reconcile to the change in cash from the comparative balance sheets

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