An increase in which of the following will cause operating cash flow to decrease, all else the same?
I. Interest expense.
II) Depreciation.
III) Taxes paid.
A) I and II only
B) II and III only
C) I only
D) II only
E) III only

Question

An increase in which of the following will cause operating cash flow to decrease, all else the same? 
I. Interest expense.
II) Depreciation.
III) Taxes paid.
A) I and II only
B) II and III only
C) I only
D) II only
E) III only

Quizplus · Accepted Answer

Operating cash flow decreases when taxes paid increase, as taxes are a cash outflow. Interest expense does not affect operating cash flow directly, and depreciation is a non-cash expense that does not decrease cash flow.

An Increase in Which of the Following Will Cause Operating