Why is depreciation added back to the PAT when calculating cash flow from operating activities? Option: Depreciation is a revenue item, Depreciation is a non-cash expense, Depreciation is a cash inflow, Depreciation is a liability

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Why is depreciation added back to the PAT when calculating cash flow from operating activities?

Depreciation is a revenue item

Depreciation is a non-cash expense

Depreciation is a cash inflow

Depreciation is a liability

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Which of the following is NOT a non-cash expense that needs to be added back when calculating Free Cash Flow?

Deferred Taxes

Depreciation

Interest Expense

Amortization

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How does the Profit After Tax (PAT) from the Profit & Loss (P&L) statement connect to the balance sheet?

PAT is recorded as an expense on the balance sheet

PAT increases the company's accumulated depreciation

PAT is added to the company's liabilities

PAT contributes to the shareholder equity section of the balance sheet

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Which financial statement does the current year depreciation figure appear in?

Cash Flow Statement

Statement of Changes in Equity

Profit and Loss Statement

Balance Sheet

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What is the relationship between a company's Profit After Tax (PAT) and its retained earnings?

"PAT is deducted from retained earnings"

"PAT is transferred to the general reserve"

"PAT is added to retained earnings"

"PAT has no impact on retained earnings"

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How is the Free Cash Flow (FCF) of a company calculated?

Gross Profit - Taxes

Cash from Operating Activities - Capital Expenditures

Net Income + Depreciation

Revenue - Expenses