Which of the Following Mathematical Expressions Calculates the Net Cash

question 75

Multiple Choice

Which of the following mathematical expressions calculates the net cash flow if depreciation is the only noncash item in a firm's income statement?

• A)Net cash flow = Net income + Depreciation
• B)Net cash flow = Accounting profit - Depreciation
• C)Net cash flow = Accounting profit - Operating cash flow
• D)Net cash flow = Fixed assets + Depreciation
• E)Net cash flow = Operating cash flow - Depreciation

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