Question
Which one of the following formulas is incorrect? A. Operating cash flow = revenues - cash expenses - taxes B. Operating cash flow = net
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)
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
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