It would be correct to define Operating Cash Flow (OCF) as net operating profit after taxes minus depreciation.

Question

Quizplus · Accepted Answer

Operating Cash Flow (OCF) is defined as the cash generated or consumed by a company's normal business operations. It is calculated by adding back non-cash expenses like depreciation and amortization to net income. Therefore, the correct formula for OCF is net operating profit after taxes plus depreciation.

It Would Be Correct to Define Operating Cash Flow (OCF)