Question

The net cash flow is equalto__________.

(a) Income after taxes minus depreciation.
(b) Income after taxes minus dividends.
(c) Cash receipts minus cash payments.
(d) Cash receipts minus cash payment minus depreciation.

Answer 1

The correct answer is letter "C": Cash receipts minus cash payments.

Step-by-step explanation:

Net cash flow is the cash left after all liabilities of a company were subtracted. In other words, it is the result of subtracting cash payments from cash receipts. Net cash flow is a common tool for evaluating a company's cash flow. It is the cash left on the Financial Statement for the company after it charges all the expenses from the firm's transactions.