Author Question: In finance, we separate operating decisions from financing decisions and thus exclude ________ as a ... (Read 108 times)

chandani

  • Hero Member
  • *****
  • Posts: 541
In finance, we separate operating decisions from financing decisions and thus exclude ________ as a part of operating income from the income statement.
 
  A) cash flow
  B) dividends
  C) interest expense
  D) earnings

Question 2

Which of the following statements is true?
 
  A) The finance manager uses the framework of the income statement to find the operating income of the company (an accounting measure), which is also the true cash flow from operations.
  B) In accrual-based accounting, revenue is recorded at the time of sale if the revenue has been received in cash.
  C) Three fundamental issues separate net income and cash flow: accrual-based accounting, noncash expense items, and interest expense.
  D) Generally accepted accounting principles (GAAP) in the United States do not allow the use of accrual-based accounting to record revenue.



shewald78

  • Sr. Member
  • ****
  • Posts: 340
Answer to Question 1

Answer: C

Answer to Question 2

Answer: C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

For a complete list of videos, visit our video library