The following items are reported on a company's income statement.Which of them is most likely equal to its cash flow impact?

Question

Quizplus · Accepted Answer

Interest expense is most likely equal to its cash flow impact since it represents the actual cash paid for interest on borrowings. Amortization expense and gain/loss on sale of assets or investments do not necessarily reflect cash paid or received in the current period.

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