Which of the following would be a reasonable short-cut approach to calculating cash from operations?
A)Net income plus amortization
B)Net income minus amortization
C)Net income plus the increase in accounts receivable
D)Net income minus the increase in accounts receivable

Question

Quizplus · Accepted Answer

Amortization is a non-cash expense, so adding it back to net income helps approximate cash from operations.

Which of the Following Would Be a Reasonable Short-Cut Approach