Operating Cash flOw Can Be Computed As

question 267

Multiple Choice

Operating cash flow can be computed as:

• A) Net income minus depreciation plus taxes.
• B) Cash flow from assets plus net capital spending plus the change in net working capital.
• C) Net income plus depreciation.
• D) Earnings before interest and taxes plus depreciation minus taxes.
• E) Earnings before interest and taxes plus depreciation and interest, minus taxes.

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Definitions:

Prototype Matching

A cognitive process of comparing a stimulus with a mental representation of the best example of a particular category.

Stencil

A sheet of material with a design cut out of it, used to produce the design on an underlying surface by applying ink or paint through the cut-out areas.

Bottom-Up Processing

A cognitive process by which we analyze information starting with the smallest or most detailed elements and working up to a comprehensive understanding.

Top-Down Processing

An approach to information processing guided by higher-level mental processes as we construct perceptions drawing from our experience and expectations.