Which of the Following Is Not Accurate in Depicting Cash

question 84

Multiple Choice

Which of the following is not accurate in depicting cash flows from operations?

• A) (revenues - expenses)(1 - tax rate) + (depreciation * tax rate)
• B) (revenues - expenses - taxes paid)
• C) (net profit + depreciation)
• D) (revenues - cash expenses - taxes paid)

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Definitions:

Interest to Creditors

The amount paid to creditors for lending money or extending credit, typically represented as an annual percentage of the principal.

Current Expenses

Short-term expenses that are incurred in the normal operations of a business and are expected to be paid within a fiscal year.

Dividends to Stockholders

Payments made by a corporation to its shareholder members, usually deriving from the company's earnings.

Comprehensive Income

The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources, encompassing all revenue, expenses, gains, and losses.