Which of the Following Is Not a Reason Why Cash

question 80

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:

Hatred

A deep and intense dislike or ill will toward a person, group, or object.

Harassment

Unwanted or unwelcome behavior that causes distress or discomfort, often in a repetitive or persistent manner.

Stalking

A course of action that would cause a reasonable person to feel fear.

Unwelcome

Not received with pleasure or approval; often used in contexts such as unwelcome sexual advances or behaviors.