Which of the Following Identities Is TRUE

question 58

Multiple Choice

Which of the following identities is TRUE?

• A)Operating Cash Flow = EBIT + Depreciation - Taxes
• B)Net Capital Spending = Ending Net Fixed Assets - Depreciation
• C)Change in Net Working Capital (NWC)= Current Assets - Current Liabilities
• D)Cash Flow from Assets = Operating Cash Flow + Net Capital Spending

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Definitions:

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Hypothesis

A hypothesis is a proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Variable

An element, feature, or factor that is liable to vary or change.

Scientific Method

is a systematic approach to research and experimentation used to explore observations and answer questions by making hypotheses and testing them.