To Estimate the Cash Flow from Operations,depreciation Must Be Added

question 77

True/False

To estimate the cash flow from operations,depreciation must be added back to net income because it is a non-cash charge that has been deducted from revenue in the net income calculation.

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Definitions:

Dividend Yield

A financial metric that compares a company's annual dividend payments to its stock price.

Shares

Units of ownership interest in a corporation or financial asset, providing a portion of the ownership to the shareholder.

Geometric Average

The average rate of return for a set of values calculated by multiplying them together and then taking the nth root (where n is the total number of values).

Arithmetic Average

A calculated central value of a set of numbers by adding all numbers and dividing by the count of numbers.