A firm's operating cash flow (OCF) is defined as ________.a.EBIT plus depreciationb.gross profit minus operating expensesc.gross profit minus depreciationd.EBIT times one minus the tax rate plus depreciation

Cash generated by the operating activities of an organization is called Operating Cash Flow. An…

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irm's operating cash flow (OCF) is defined as

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 26MCQ

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Question

A firm's operating cash flow (OCF) is defined as ________.

EBIT plus depreciation

gross profit minus operating expenses

gross profit minus depreciation

EBIT times one minus the tax rate plus depreciation

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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