If You Start with Earnings Before Interest and Taxes and Then

question 81

Multiple Choice

If you start with earnings before interest and taxes and then subtract a firm's tax expense while adding back the amount of depreciation expense for the firm during the year,the resulting figure is called

• A) free cash flow
• B) operating cash flow
• C) net cash flow
• D) gross cash flow

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Definitions:

Prospective Co-Workers

Individuals who are being considered or evaluated for potential employment within an organization or team.

Validity

The characteristic of scores on a selection device that have a demonstrated correlation with future job performance.

Future Job Performance

The expected level of an employee's work efficiency and effectiveness in future tasks and responsibilities.

Selection Device

Tools or processes used to assess and choose the most suitable candidates for a job or task.