Which of the following is one step in calculating cash provided from operations?
A) adding dividends to share capital
B) adding depreciation to net profit for the year
C) adding operating income to cash
D) adding dividends to profit before taxes

Question

Quizplus · Accepted Answer

Adding depreciation to net profit for the year is a step in calculating cash provided from operations because depreciation is a non-cash expense that reduces net profit but does not affect cash flow, so it is added back to net profit in the cash flow statement.

Which of the Following Is One Step in Calculating Cash