An Increase in Which One of the Following Will Cause

question 18

Multiple Choice

An increase in which one of the following will cause the operating cash flow to increase?

• A)Depreciation.
• B)Change in net working capital.
• C)Net working capital.
• D)Taxes.
• E)Costs.

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Definitions:

Capital Section

Part of a company’s balance sheet that details the funding provided by owners and investors, including paid-in capital and retained earnings.

Revenue Section

Part of the income statement that details the amounts earned from normal business operations, excluding expenses to calculate gross profit.

Asset Section

Part of a balance sheet that lists a company's assets, including current and non-current (or long-term) assets.

Oral Agreement

A contract or agreement made through spoken communication rather than in writing, yet legally binding in many cases.