Which of the following is least likely a change in cash flow from operations under U.S. GAAP?
A decrease in notes payable.
B. An increase in interest expense.
C. An increase in accounts payable.
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Which of the following is most likely an essential characteristic of an asset?
An asset is tangible.
B. An asset is obtained at a cost.
C. An asset provides future benefits.
Which principle requires that cost of goods sold is recognized in the same period in which the sale of the related inventory is recorded?
A. Going concern.
B. Certainty.
C. Matching.
Depreciation expense would be classified as:
A. Operating cash flow.
B. Investing cash flow.
C. No cash flow impact.
Which of the following items is least likely considered a cash flow from financing activity under U.S. GAAP?
A. Receipt of cash from the sale of bonds.
B. Payment of cash for dividends.
C. Payment of interest on debt.