Which of the Following Is Not One of the Reasons

question 67

Multiple Choice

Which of the following is not one of the reasons why net income differs from cash flows from operations under the indirect method of calculating cash flows?

• A) non-cash items, such as depreciation and amortization
• B) changes in working capital accounts
• C) gains and losses related to the sale of plant, property and equipment
• D) sale or repurchase of capital stock

---

Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and equity at a specific point in time, showing the company's financial condition.

Scrip Dividends

A form of dividend payment made by a company to its shareholders in the form of additional stock, instead of cash.

Property Dividends

Dividends paid to shareholders in the form of assets other than cash.

Stock Dividends

A dividend payment made to shareholders in the form of additional shares rather than cash payout, reflecting the company's desire to reinvest the dividend back into the business.