Which of the following is not accurate in depicting cash flows from operations?
A) (revenues - expenses)(1 - tax rate) + (depreciation * tax rate)
B) (revenues - expenses - taxes paid)
C) (net profit + depreciation)
D) (revenues - cash expenses - taxes paid)

Question

Quizplus · Accepted Answer

(revenues - expenses - taxes paid) does not consider non-cash expenses like depreciation, which are added back to net income to arrive at cash flow from operations.

Which of the Following Is Not Accurate in Depicting Cash