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Which of the following statements is CORRECT? A. Non-cash assets are expected to produce cash over time, and the value of any given asset when

Which of the following statements is CORRECT?

A.

Non-cash assets are expected to produce cash over time, and the value of any given asset when it is converted to cash in the future should be the exact same as its value as currently reported on the books.

B.

Operating income is derived from a firms core business operations and does not include interest or taxes.

C.

Dividends do not appear on the statement of cash flows because dividends are considered to be a financing activity, not an investing activity.

D.

Most rapidly growing companies have positive free cash flows because cash flows from existing operations will exceed fixed assets and working capital needed to support the rapid growth.

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