Adding Depreciation Expense to Net Profit Equals

question 41

Multiple Choice

Adding depreciation expense to net profit equals:

• A) profit before tax.
• B) total revenues.
• C) the depreciation tax shield.
• D) cash flows from operations.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, commonly used as an indicator of inflation.

Risk Premium

The extra return demanded by investors for holding a riskier asset compared to a risk-free investment.

Compensation

Payment or rewards given to employees or workers for their services, which can include wages, salaries, benefits, and bonuses.

Money Managers

Professionals who make investment decisions and manage the portfolio of securities for their clients.