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)

---

Definitions:

Indifferent

Showing no particular interest or sympathy; apathetic or unconcerned.

Contact

The act of communicating with someone else, either physically, through touch, or by other means, such as email or telephone.

Loyal Siblings

Loyal siblings refer to brothers and sisters who exhibit consistent support, trust, and allegiance towards each other throughout their lives.

Family Bonds

The emotional connections and ties of affection that unite members of a family.