When Calculating Cash Flow from Operations,one Should

question 27

Multiple Choice

When calculating cash flow from operations,one should:

• A) subtract depreciation since it represents the cost of replacing worn-out equipment.
• B) deduct the depreciation tax shield from after-tax profit.
• C) use after-tax profit and ignore depreciation.
• D) add depreciation to after-tax profit.

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Definitions:

Ethical Dilemma

A situation where an individual faces a choice between two or more morally correct but mutually exclusive actions, challenging their ethical principles.

RADAR Model

A framework for recognizing, avoiding, and defending against reputational damage and ethical failures in organizations.

Groupthink

A mental effect observed in a collective where the pursuit of consensus or uniformity leads to illogical or ineffective choices.

RADAR Model

A framework used in business to Recognize, Avoid, Detect, Answer, and Recover from potential risks or issues.