If a firm pays taxes,which one of these will reduce net income but increase cash flow?
A) Depreciation expense
B) Income taxes
C) Cash sales
D) Interest expense

Name: If a firm pays taxes,which one of these will reduce net income but increase cash flow? A) Depreciation expense B) Income taxes C) Cash sales D) Interest expense
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Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash charge that reduces net income but does not affect cash flow, as it is added back in the cash flow statement.

If a Firm Pays Taxes,which One of These Will Reduce