An increase in which one of the following will increase operating cash flow for a profitable,tax-paying firm?

Name: An increase in which one of the following will increase operating cash flow for a profitable,tax-paying firm?
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that reduces the reported net income of a firm for tax purposes. However, it does not affect the firm's cash flows. Therefore, an increase in depreciation will result in a higher operating cash flow for the firm.

An Increase in Which One of the Following Will Increase