Which of the Following Is a Source of Cash Flows

question 34

Multiple Choice

Which of the following is a source of cash flows?

• A) Cost of goods sold.
• B) Depreciation.
• C) Interest expense.
• D) Taxes.

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Definitions:

Capital Account Balances

Represent the net assets owned by shareholders or partners in an entity, reflecting investments, profits, and losses.

Net Income and Losses

The financial result for a period, calculated as the difference between total revenues and total expenses. If positive, it is net income; if negative, it is a net loss.

Creditors' Claims

The rights of creditors to demand payment from a debtor or the debtor's estate.

Noncash Assets

Assets that are not in the form of cash or cannot be easily converted to cash, such as real estate, equipment, and intellectual property.