Using the Direct Method of Cash Flow, Which of the Following

question 86

Multiple Choice

Using the direct method of cash flow, which of the following is a category in the statement of cash flows?

• A)Amortization expense
• B)Loss on sale of equipment
• C)Collections from customers
• D)Net income

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Definitions:

Positive Variance

The difference between actual performance and expected performance where the actual outcome is more favorable than what was anticipated.

Weights

In finance, it refers to the proportion of each component's value in a portfolio or in a weighted average calculation.

Expected Return

The probable return on an investment, taking into account all possible outcomes or the aggregate return that an investor anticipates over a certain period.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk or un-diversifiable risk.