Which one of the following formulas is incorrect? A. Operating cash flow = revenues - cash expenses
Fantastic news! We've Found the answer you've been seeking!
Question:
Which one of the following formulas is incorrect?
A. Operating cash flow = revenues - cash expenses - taxes
B. Operating cash flow = net profit + depreciation
C. Depreciation tax shield = depreciation × (1 - tax rate)
D. Operating cash flow = (revenues - cash expenses) × (1 - tax rate) + (depreciation × tax rate)
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date: