_____ Is Calculated by Adding Back Noncash Expenses to Net

question 94

Multiple Choice

_____ is calculated by adding back noncash expenses to net income and adjusting for changes in current assets and liabilities.

• A) Operating cash flow
• B) Capital spending
• C) Net working capital
• D) Cash flow from operations
• E) Cash flow to creditors

---

Definitions:

Issue Price

The price at which a new issue of securities is offered to the public.

Strip Bond

A bond where both the principal and regular interest payments have been removed, typically sold at a discount and pays no interest until maturity.

Yield Rate

The income return on an investment, such as the interest or dividends received, expressed annually as a percentage based on the investment's cost, current market value, or face value.

Strip Bond

A debt security that has had its principal and coupon payments detached and sold separately.