Operating Cash Flow Is Equal to the Change in EBIT

question 110

True/False

Operating cash flow is equal to the change in EBIT less the change in interest expense,less the change in taxes,plus the change in depreciation.

---

Definitions:

Federal Income Tax

A tax levied by the United States federal government on the annual income of individuals, corporations, trusts, and other legal entities.

Limited Life

A concept referring to assets or entities that are not expected to operate indefinitely, having a defined period of effectiveness or existence.

Net Loss

The result when total expenses exceed total revenues during a specific period, indicating financial loss.

Organize

The process of structuring or arranging resources and tasks to achieve a specific objective efficiently.