The primary source of the firm's cash flow is usually:
A) net income.
B) tax credits.
C) earnings before interest and depreciation minus taxes.
D) capital spending after taxes.
E) working capital requirements.

Question

Quizplus · Accepted Answer

Earnings before interest and depreciation minus taxes (often referred to as operating cash flow) is a primary source of cash flow as it represents the cash generated from the firm's core business operations.

The Primary Source of the Firm's Cash Flow Is Usually