An increase in which of the following will cause operating cash ﬂow to decrease, all else the same? I. Interest expense.
II) Depreciation.
III) Taxes paid.
A) I and II only
B) II and III only
C) I only
D) II only
E) III only

Question

Quizplus · Accepted Answer

An increase in taxes paid will directly reduce the operating cash flow, as it is a cash outflow. Interest expense does not affect operating cash flow as it is part of financing activities, and depreciation is a non-cash expense that does not directly reduce cash flow.

An Increase in Which of the Following Will Cause Operating