One Basic Technique Used to Evaluate After-Tax Operating Cash Flows

question 41

Multiple Choice

One basic technique used to evaluate after-tax operating cash flows is to

• A) subtract depreciation from operating revenues.
• B) add cash expenses to net income.
• C) subtract cash expenses from noncash charges.
• D) add noncash charges to net income.

---

Definitions:

Evaporation

Change from liquid to vapor form.

Sweating

The process by which the body secretes fluids from sweat glands to cool down.

Protein-sparing Effect

A phenomenon in nutrition where adequate carbohydrate intake prevents the breakdown of proteins for energy, thus sparing them for their primary functions.

Fat Reserves

Stored energy in the form of fat, accumulated in adipose tissue and used by the body during times of scarcity.