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

Question

Quizplus · Accepted Answer

Operating Cash Flow (OCF) is calculated by adding the net operating profit after taxes to the depreciation expense. This is because OCF measures the cash generated by the company's core operations and depreciation is a non-cash expense that reduces net income but does not impact cash flow.

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