Which One of the Following Formulas Is Incorrect

question 75

Multiple Choice

Which one of the following formulas is incorrect?

• A) Operating cash flow = revenues − cash expenses − taxes
• B) Operating cash flow = net profit + depreciation
• C) Depreciation tax shield = depreciation × (1 − tax rate)
• D) Operating cash flow = (revenues − cash expenses) × (1 − tax rate) + (depreciation × tax rate)

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Definitions:

Distillation Process

A method of separating mixtures based on differences in their volatilities in a boiling liquid mixture.

Impurities

Substances within a material that are not part of the intended composition, often affecting its properties or quality.

Net Primary Productivity

The rate at which plants in an ecosystem produce net energy or biomass after accounting for the energy used in respiration.

Ecosystems

Complex networks of living organisms and the physical environments in which they interact, encompassing both biotic and abiotic components.