Which of the following two measures gives a better


Question: 1. Which of the following two measures gives a better indication of the value added from selling inventory:

(a) cash receive d from customers minus cash paid for inventory, or

(b) accrual revenue minus cost of goods sold? Why?

2. Interest payments should not be part of cash flow from operations. Why?

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Finance Basics: Which of the following two measures gives a better
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