Which of the Following Is NOT a Reason Why Cash

question 71

Multiple Choice

Which of the following is NOT a reason why cash flow may not equal net income?

• A)Amortization is added in when calculating net income.
• B)Changes in inventory will change cash flows but not income.
• C)Capital expenditures are not recorded on the income statement.
• D)Depreciation is deducted when calculating net income.

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Definitions:

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