Net income differs from operating cash ﬂow due to the handling of:
A) Dividends and interest expense.
B) Interest expense and depreciation.
C) Depreciation and dividends.
D) Dividends, interest expense, and depreciation.
E) Dividends.

Question

Quizplus · Accepted Answer

Net income includes non-cash expenses like depreciation and interest expense, which are adjusted in operating cash flow calculations. Dividends do not affect operating cash flow.

Net Income Differs from Operating Cash ﬂOw Due to the Handling