Which one of these is handled differently in calculating cash flows for accounting versus financial purposes?
A)Change in net working capital
B)Depreciation expense
C)Interest expense
D)Deferred taxes
E)Dividends paid

Question

Quizplus · Accepted Answer

Interest expense is treated differently in accounting versus financial purposes. In accounting, interest expense is considered an operating expense, but for financial purposes, especially in the calculation of free cash flow, it is treated as a financing cash flow.

Which One of These Is Handled Differently in Calculating Cash