Financial analysts frequently add depreciation charges to reported income to obtain a figure that they refer to
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Financial analysts frequently add depreciation charges to reported income to obtain a figure that they refer to as cash flow. This figure is sometimes used as a substitute for reported income in evaluating securities. Is this a reasonable indicator of the flow of cash through a firm? Is it an improvement over reported income for measuring performance?
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Depreciation charges are not a reasonable indicator of the flow of cash through a firm Depreciation ...View the full answer
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Related Book For 
An Introduction To Accounting And Managerial Finance A Merger Of Equals
ISBN: 9789814273824
1st Edition
Authors: Harold JR Bierman
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