Which of the Following Would NOT Appear on a Statement

question 127

Multiple Choice

Which of the following would NOT appear on a statement of cash flows prepared using the direct method?

• A)Cash received from sale of assets
• B)Cash payments for inventory
• C)Loss on sale of assets
• D)All of these items would appear

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Definitions:

Unlevered Cost of Capital

The cost of capital for a company without any debt, reflecting the required return on equity investments in a firm without leverage.

All Equity Firm

A company that finances its operations without any debt, using only its own equity.

Capital Structure

The mix of different forms of external funds used to finance a company's total capital, including debt and equity.

Coupon Rate

The annual yield paid on a bond, indicated as a percentage of its principal amount.