The following items are reported on a company's Statement of Income.Which of them is most likely equal to its cash flow impact?
A)Depreciation expense
B)Gain on sale of capital assets
C)Loss on sale of investment
D)Interest expense

Question

Quizplus · Accepted Answer

Interest expense is most likely to equal its cash flow impact because it represents the actual cash outflow for interest payments on debt, unlike depreciation expense, gain or loss on sale of assets, which are non-cash accounting entries.

The Following Items Are Reported on a Company's Statement of Income.Which