Which statement is correct regarding the statement of cashflows?
A - If the reported net income is consistently close to or less than cash from operating activities, the company's net income, or earnings are said to be of a "low quality."
B - If net income is consistently more than cash from operatingactivities, the company's net income or earnings are said to be of a "high quality."
C - If the reported net income is consistently close to or less than cash from operating activities, the company's net income or earnings are said to be of a "high quality."
D - One way to evaluate earnings quality is to compare thecompany's net income with cash from operating activities, because accrual income is less subject to managerial bias compared with cash flows .
