The Financial Planning Objective Is To

question 90

Multiple Choice

The financial planning objective is to:

• A)evade taxes.
• B)minimize taxes.
• C)maximize income.
• D)maximize after-tax cash flows.
• E)maximize tax credits.

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Definitions:

Operating Cash Flow

The cash generated by a company's normal business operations, indicating whether a company is able to generate enough positive cash flow to maintain and grow its operations.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up over time.

Operating Cash Flow

The amount of cash generated by a company's normal business operations.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and to generate profit.