Cash Flow from Operations Equals

question 12

Multiple Choice

Cash flow from operations equals:

• A) net income minus change in net working capital.
• B) net income minus depreciation.
• C) net income minus taxes.
• D) net income plus change in net working capital.
• E) net income plus depreciation.

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Definitions:

Least-Cost Decision

A decision-making process focused on selecting the option that requires the lowest financial outlay while still achieving the desired result.

Economic Profit-Maximising

The strategy of adjusting the output and pricing of goods or services to achieve the highest possible profit, taking both explicit and implicit costs into account.

Total Revenue

The entire amount of income generated by the sale of goods or services before any expenses are subtracted.

Total Cost

The complete amount of expenses incurred in the production or acquisition of goods or services, including direct and indirect costs.