Question

Which of the following line items of the statement of cash flows must be obtained from the income​ statement?

a. accruals in current liabilities.
b. cash dividends paid on both preferred and common stocks.
c. accounts receivable.
d. interest expenses.

Answer 1

The answer is D.

Step-by-step explanation:

Interest Expense is a line item in income statement. It is deducted from the gross profit/earnings.

Accounts Receivable is under current asset in balance sheet

Accruals in Curren liability will also be found in balance sheet.

cash dividends paid on both preferred and common stocks will be found under Statement of changes in equity.