Adding Depreciation Expense to Net Profit Equals

question 18

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

---

Definitions:

Automatic Stay

A legal provision that halts proceedings and lawsuits against a debtor immediately upon the filing of a bankruptcy petition.

Chapter 7

A provision of the United States Bankruptcy Code dealing with asset liquidation for the debtor to pay off creditors.

Chapter 11

A provision of the United States Bankruptcy Code that allows businesses to reorganize and restructure their debts in order to remain operational.

Debtor's Obligations

Duties and responsibilities owed by a debtor to a creditor, including repayment of loans or debts under agreed terms.