Which One of the Following Will Increase the Operating Cash

question 88

Multiple Choice

Which one of the following will increase the operating cash flow of a firm, all else constant?

• A) An increase in depreciation expense
• B) An increase in the taxes paid
• C) A decrease in sales
• D) A decrease in the interest expense
• E) A decrease in variable costs

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Definitions:

Liquidated Debt

A debt for which the amount owed is known and agreed upon by both parties.

Liquidated Debt

A debt for which the exact monetary value has been determined and acknowledged by both the debtor and creditor.

Unliquidated Debt

A debt that has not been determined or fixed in amount, often because it is subject to a legal dispute or requires a judgment to ascertain its value.

Accord And Satisfaction

A legal settlement where a debtor offers something different than originally agreed upon, and if accepted, the debt is considered settled.