In computing after-tax operating cash flows, only operating costs but not financing costs must be deducted from any cash inflows received.

Name: In computing after-tax operating cash flows, only operating costs but not financing costs must be deducted from any cash inflows received.
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Question

Quizplus · Accepted Answer

After-tax operating cash flows only take into consideration operating costs, not financing costs such as interest expenses on loans or bonds. These financing costs are usually deducted when calculating net income.

In Computing After-Tax Operating Cash Flows, Only Operating Costs but Not