Which of the Following Is NOT a Reason Why Cash

question 71

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:

Accept

To receive or take willingly something that is offered; to agree to or consent to a proposal or offer.

Outcome

The result or effect of an action, situation, or event.

Fulfilled

The feeling or state of being satisfied or completed, especially in terms of meeting one’s needs or achieving one’s goals.

Needs

The requirements necessary to maintain life and achieve personal fulfillment.