Question

Operating cash flow is defined as:A. a firm's net profit over a specified period of time.B. the cash that a firm generates from its normal business activities using its existing assets.C. the change in the net working capital over a stated period of time.D. the cash that is generated and added to retained earnings

Answer 1

Answer:

B. the cash that a firm generates from its normal business activities using its existing assets

Explanation:

It represent the cash from the main activity. It is a good indicator wether the company needs external financing or it can sustain his grow with own funds.

It is stated in the cash flow statement. along with investing and financing activities.