The Following Items Are Reported on a Company's Statement of Income.Which

question 38

Multiple Choice

The following items are reported on a company's Statement of Income.Which of them is most likely equal to its cash flow impact?

• A)Depreciation expense
• B)Gain on sale of capital assets
• C)Loss on sale of investment
• D)Interest expense

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Definitions:

Sales Revenues

The income received by a company from its sales of goods or the provision of services, before any expenses are deducted.

Variable Costs

Variable expenses directly linked to the operational scale of a business.

Variable Costing

Variable costing is an accounting approach that includes only variable production costs (materials, labor, and overhead) in product costs, omitting fixed costs.

Net Income

The total profit of a company after all expenses, taxes and costs have been subtracted from total revenue.