Final answer:
Non-cash items do not affect cash flow, earnings per share, retained earnings, or net income.
Step-by-step explanation:
Non-cash items do not affect cash flow because they do not involve the movement of actual cash in or out of a company. Examples of non-cash items include depreciation expenses, stock-based compensation, and gains or losses from the disposal of assets.
Non-cash items also do not affect earnings per share because they are not related to the company's profitability or performance. Earnings per share is calculated by dividing net income by the weighted average number of outstanding shares.
Similarly, non-cash items do not impact retained earnings, which is the accumulated net income of a company that has not been distributed to shareholders as dividends. Retained earnings are affected by net income, dividends, and certain adjustments made to financial statements.
Finally, non-cash items do not directly affect net income, which is the total revenue minus all expenses incurred by a company during a specific period. Non-cash items are typically excluded from net income calculations as they do not involve actual cash flows.