Vidyalelo
Commerce · Q307

Financial Management

Graduate and Post Graduate · Commerce · question 307

Q307

In calculation of net cash flow, depreciation and amortization are treated as

A.
current liabilities
B.
income expenses
C.
non-cash revenues
D.
non-cash charges
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In calculation of net cash flow, depreciation and amortization are treated as non-cash charges. A non-cash charge is a write-down or accounting expense that does not involve a cash payment.