Three Important Line Items on the Statement of Cash Flows

question 1

Multiple Choice

Three important line items on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT

• A) depreciation and any non-cash charges.
• B) interest expenses.
• C) net profits after taxes.
• D) cash dividends paid on both preferred and common stocks.

---

Definitions:

Price

The cost or value assigned to a product or service, determining what a buyer must pay to acquire it.

Supplier

An entity, individual, or company that provides products or services to another entity or individual typically in a supply chain context.

Income

Proceeds that come in, particularly at consistent intervals, from occupational or investment sources.

Utility Function

A mathematical representation that captures the preference ranking of various bundles of goods by an individual, translating these preferences into a level of utility or satisfaction.