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:

Investee

The company whose stock is purchased by the investor.

Held-to-Maturity Investments

Investments in debt securities that a company has the positive intent and ability to hold until maturity.

Broker's Commissions

This term refers to the fees that brokers earn for facilitating transactions or services such as sales of securities, real estate, or insurance policies.

Recorded

The action of entering or documenting information in a formal record or accounting system for future reference or analysis.