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Deontrae Brown
on Nov 13, 2024

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How is annual cash inflow determined?

A) Depreciation is subtracted from net income because it is an expense.
B) Depreciation is added back to net income because it is not an outflow of cash.
C) Depreciation is subtracted from net income because it is an outflow of cash.
D) Depreciation is added back to net income because it is an inflow of cash.

Annual Cash Inflow

The total amount of money being received into a business from all sources over the course of a year.

Depreciation

The process of allocating to expense the cost of a plant asset over its useful (service) life in a rational and systematic manner.

Net Income

The net income of a company once all costs and taxes are deducted from the total revenue.

  • Distinguish between costs that are pertinent and those that are not in various decision-making situations.
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Zeinab ahmadNov 15, 2024
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