A Firm's Internally Generated Funds Are Calculated By

question 28

Multiple Choice

A firm's internally generated funds are calculated by:

• A) subtracting depreciation from net income.
• B) adding depreciation to net income.
• C) adding dividends to net income.
• D) subtracting dividends from net income plus depreciation.

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Definitions:

Cause and Effect

A relationship between events where one or more are the result of the other(s), a fundamental concept in establishing correlations in various fields.

Rational Self-interest

The principle that individuals tend to make decisions that result in the most personal benefit.

Satisfying Wants

Fulfilling the desires or needs of consumers, often a goal for businesses to meet through the production of goods and services.

Income

A broader term that encompasses money received on a regular basis from work, property, investments, or welfare payments.