Operating cash flow is referred to as which one of the following?
A)revenue minus expenses
B)cash realized from the sale of assets
C)cash flow originating from the issuance of securities
D)cash generated by a firm's normal business activities
E)pretax income

Question

Quizplus · Accepted Answer

Operating cash flow is the cash generated by a firm's normal business activities, such as sales and services, and is calculated by subtracting operating expenses from revenues. Option A is net income or profit, option B is cash flow from investing activities, option C is cash flow from financing activities, and option E is not related to cash flow but rather income before taxes.

Operating Cash Flow Is Referred to as Which One of the Following