Which of the Following Statements Regarding Calculating Cash Flow from Operations

question 115

Multiple Choice

Which of the following statements regarding calculating cash flow from operations is incorrect?

• A) Cash flow from operations = revenues - cash expenses - taxes paid
• B) Cash flow from operations = net profit + depreciation
• C) Depreciation tax shield = depreciation * (1 -tax rate)
• D) Cash flow from operations = (revenues - cash expenses) * (1 - tax rate) + (depreciation * tax rate)