Net cash flow is equal to
A) income after taxes minus depreciation.
B) income after taxes minus dividends.
C) cash receipts minus cash payments.
D) cash receipts minus cash payments minus depreciation.

Question

Quizplus · Accepted Answer

Net cash flow is a measure of the inflow and outflow of cash for a business. It is calculated by subtracting cash payments from cash receipts. Depreciation and dividends are not included in the calculation of net cash flow. Therefore, the correct answer is C.

Net Cash Flow Is Equal to