Which of the Following Would Decrease Free Cash Flows? a Decrease

question 71

Multiple Choice

Which of the following would decrease free cash flows? A decrease in:

• A)depreciation expense.
• B)interest expense.
• C)incremental sales.
• D)both A and C.
• E)all of the above.

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Definitions:

Account Form

The form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and Liabilities and Owner’s Equity sections on the right side.

Merchandising Business

A type of business that purchases goods and resells them to consumers without changing their form, primarily making profit through the retail or wholesale of products.

Service Business

A business that provides intangible products or services to customers rather than physical goods.

Closing Entries

The entries that transfer the balances of the revenue, expense, and drawing accounts to the owner’s capital account.