Which One of the Following Is the Most Common Definition

question 105

Multiple Choice

Which one of the following is the most common definition of cash flow as used in the price-cash flow ratio?

• A)net income minus dividends
• B)net income plus depreciation
• C)net income minus depreciation plus taxes
• D)earnings before interest and taxes plus depreciation
• E)earnings before interest and taxes

---

Definitions:

Selling Price

The price at which a product or service is offered to the buyer.

Retailer

A business entity that sells goods or services directly to consumers, acting as the final link in the supply chain.

Profit (Loss)

The financial result of operations, where profit indicates revenue exceeds expenses, and loss indicates expenses exceed revenue.

Sale Price

The final price of a product or service after any discounts or promotions have been applied.