An increase in which one of the following will cause the operating cash flow to increase?
A)Depreciation.
B)Change in net working capital.
C)Net working capital.
D)Taxes.
E)Costs.

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that reduces net income but does not involve any actual outflow of cash. Therefore, when depreciation is added back to net income in the calculation of operating cash flow, it increases the resulting cash flow.

An Increase in Which One of the Following Will Cause