Increasing Which One of the Following Will Increase the Operating

question 25

Multiple Choice

Increasing which one of the following will increase the operating cash flow assuming that the bottom-up approach is used to compute the operating cash flow?

• A)erosion effects
• B)taxes
• C)fixed expenses
• D)salaries
• E)depreciation expense

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Definitions:

Availability Delay

The lag between the deposit of a check and the moment the funds become available in the account.

Securities Trade

The buying and selling of financial instruments such as stocks, bonds, and mutual funds.

Fixed Cost

Costs that do not vary with the volume of output or sales, such as rent, salaries, and insurance premiums.

Target Cash Balance

The optimal amount of cash that a company aims to maintain to handle its operational and transactional needs.