Thursday, December 8, 2011

What is the greatest shortcoming of just adding depreciation back to net income in a firm鈥檚 cash from operatio?

A) Depreciation is not relevant to a cash flow analysis.





B) Expenditures for PP%26amp;E are not considered in the cash flow from operations.





C) Changes in working capital elements are disregarded in this approach.





D) Companies do not report their depreciation expenses.|||question is a bit unclear.





answer is b or c. both b and c are true but not sure what question is driving at.

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