The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations depends on the nature of its operations. _____ usually show an addback for deferred tax expense, whereas firms that _____ show a subtraction.
A)Rapidly growing firms; have operating losses
B)Firms that have operating losses; are profitable
C)Profitable firms; have operating losses
D)Firms that stop growing or that shrink; rapidly growing firms
E)Rapidly growing firms; stop growing or that shrink

Question

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The Answer of The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations depends on the nature of its operations. _____ usually show an addback for deferred tax expense, whereas firms that _____ show a subtraction.
A)Rapidly growing firms; have operating losses
B)Firms that have operating losses; are profitable
C)Profitable firms; have operating losses
D)Firms that stop growing or that shrink; rapidly growing firms
E)Rapidly growing firms; stop growing or that shrink

The Extent to Which a Firm Adjusts Net Income for Changes