Author Question: In finance, we separate operating decisions from financing decisions and thus exclude ________ as a ... (Read 97 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?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

For a complete list of videos, visit our video library