Author Question: Three fundamental issues separate net income and cash flow. Which of the answers below is NOT one of ... (Read 35 times)

nelaaney · **on:** Jul 10, 2018

Three fundamental issues separate net income and cash flow. Which of the answers below is NOT one of these three fundamental issues?

A) Accrual accounting
B) Noncash accounting
C) Noncash expense items
D) Interest expense

Question 2

One of the key components to making financial decisions is to ________.

A) understand the timing and amount of dividends
B) understand the timing and amount of cash flow
C) understand the timing of EBIT
D) understand the amount of net income

jrpg123456 · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: B

Answer to Question 2

Answer: B
Explanation: B) One of the key components to making financial decisions is to understand the timing and amount of cash flow. Dividends, EBIT, and net income are not synonymous with the firm's cash flow for any particular period.