Which of the Following Identities Is TRUE

question 58

Multiple Choice

Which of the following identities is TRUE?

• A)Operating Cash Flow = EBIT + Depreciation - Taxes
• B)Net Capital Spending = Ending Net Fixed Assets - Depreciation
• C)Change in Net Working Capital (NWC)= Current Assets - Current Liabilities
• D)Cash Flow from Assets = Operating Cash Flow + Net Capital Spending

---

Definitions:

More Elastic Demand

A situation where the demand for a product is more sensitive to changes in price, meaning quantities demanded change significantly even with small price fluctuations.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Foundation for Success

The essential elements or conditions that must be in place to achieve positive outcomes or success.

Facing Competition

The act of engaging in business or market activities where multiple entities vie for the same customers or market share.