Depreciation Needs to Be _____ the Cash Flow in Each

question 1

Multiple Choice

Depreciation needs to be _____ the cash flow in each year to calculate taxes for that year.

• A) added to
• B) subtracted from
• C) either a or b
• D) neither a nor b

---

Definitions:

Preferred Share

Equity shares in a corporation, which provide dividends to its holders before dividends are distributed to common shareholders, and typically have no or restricted voting rights.

Specific Dividend

A dividend paid out in forms other than cash, such as stocks or other assets, to shareholders.

Par-value Share

A type of stock with a nominal face value that companies define in their corporate charter.

Debenture

An acknowledgment of debts by a corporation normally involving more than one creditor; often used interchangeably with “bond,” but whereas a bond is typically secured against a specific asset, a debenture may be unsecured or secured by a floating charge against inventory.