Which of the following is NOT a reason why cash flow may not equal net income?
A)Amortization is added in when calculating net income.
B)Changes in inventory will change cash flows but not income.
C)Capital expenditures are not recorded on the income statement.
D)Depreciation is deducted when calculating net income.

Question

Quizplus · Accepted Answer

Amortization is not added in when calculating net income; it is deducted, similar to depreciation.

Which of the Following Is NOT a Reason Why Cash