Adding depreciation expense to net profit equals:
A) profit before tax.
B) total revenues.
C) the depreciation tax shield.
D) cash flows from operations.

Name: Adding depreciation expense to net profit equals: A) profit before tax. B) total revenues. C) the depreciation tax shield. D) cash flows from operations.
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Question

Quizplus · Accepted Answer

Adding depreciation expense to net profit gives cash flows from operations, as depreciation is a non-cash expense that is added back to net profit to calculate cash flows.

Adding Depreciation Expense to Net Profit Equals