Operating Cash Flow Is Defined As

question 290

Multiple Choice

Operating cash flow is defined as:

• A) Earnings before interest and taxes minus depreciation plus taxes.
• B) The change in net working capital plus depreciation minus taxes.
• C) Earnings before interest and taxes plus depreciation minus taxes.
• D) Sales minus costs minus depreciation plus taxes.
• E) Sales minus variable costs minus fixed costs minus depreciation minus taxes.

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Definitions:

Apparent Authority

Refers to a situation where a third party reasonably believes an agent has the authority to act on behalf of a principal, even if the agent does not have such authority.

Implied Authority

The power or right assumed to be held by a person in a position of leadership or responsibility, based on the role rather than explicitly stated.

Maverick Buyers

Individuals within an organization who make unauthorized purchases outside of agreed contracts or procurement policies, often leading to inefficiencies and increased costs.

Apparent Authority

This refers to a situation where someone seems to have the power to act on behalf of a business or an organization, even if they haven't been officially given this authority.