Cash Flow from Operations Should Include None of the Cash

question 3

Short Answer

Cash flow from operations should include none of the cash flows associated with marketable securities if such transactions are viewed as ___________________________________.

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Definitions:

MACRS Depreciation

A method of depreciation in the United States that allows for accelerated depreciation of assets under the tax code.

Incremental Cash Flow

is the additional operating cash flow that an organization receives from taking on a new project.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual increments.