Which of the Following Statements Regarding Operating Cash flOws Is

question 351

Multiple Choice

Which of the following statements regarding operating cash flows is accurate?

• A) To evaluate changes in OCF you need to look at both the statement of financial position and statement of comprehensive income.
• B) Changes in OCF will occur when cost of goods sold changes, all else the same.
• C) Changes in OCF result directly from changes in financing
• D) OCF for a project can be found by subtracting depreciation from project net income.
• E) An increase in depreciation will cause a decrease in OCF, all else the same.

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