The Operating Cash Flow of a Firm Is Equal to Net

question 273

Multiple Choice

The operating cash flow of a firm is equal to net income plus depreciation provided that:

• A) Taxes are ignored.
• B) The financing costs are ignored.
• C) The project is a cost cutting project.
• D) The costs are expressed as equivalent annual costs.
• E) Net income is positive.

---

Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which leads to changes in voluntary behavior.

Compulsions

Actions or thoughts that a person is compelled to repeat due to an obsession, or in response to strict rules that have to be followed precisely.

Compulsion

An irresistible urge to behave in a certain way, especially against one's conscious wishes.

Checking Locks

A behavior often associated with obsessive-compulsive disorder, characterized by the compulsive need to repeatedly check if doors are locked.