Which of the Following Cash Outflows Does Not Reduce a Firm's

question 41

Multiple Choice

Which of the following cash outflows does not reduce a firm's net income?

• A) Income taxes
• B) Interest expense
• C) Dividends
• D)Depreciation expense

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Definitions:

Disability Insurance

A type of insurance that provides income in the event a worker is unable to perform their work and earn money due to a disability.

Insurance Corporation

A company that offers insurance policies to individuals or other entities, covering a range of risks.

Employee Benefits Package

A collection of non-wage compensations provided to employees in addition to their normal wages or salaries.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities with the aim of generating profits.