Which of the Following Is True Regarding the Cash Flows

question 120

Multiple Choice

Which of the following is true regarding the cash flows of a firm?

• A) Depreciation increases the cash flows of a firm.
• B) The payment of a loan repayment to a bank is a cash outflow for the firm.
• C) The sale of new shares of stocks increases the financing cash flows
• D) Operating cash flow equals net income plus depreciation
• E) All of the above.

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Definitions:

Scowling Face

A facial expression often used to convey displeasure, anger, or disapproval, characterized by a furrowed brow and frowned mouth.

Face Muscles

A group of striated skeletal muscles situated underneath the facial skin that controls facial expression, enabling humans to communicate feelings and emotions non-verbally.

Circadian Rhythms

Biological processes that occur on a roughly 24-hour cycle, affecting various physiological functions like sleep-wake patterns, hormone production, and body temperature.

Light-Dark Cycles

The natural or artificial alteration between light and darkness which influences the physiological and behavioral functions of living organisms.