Question

Cash flows should always be considered on a(n) _____ basis.

a) Pre-tax
b) After-tax
c) Before-tax
d) Zero-tax

Answer 1

Cash flows should always be considered on a before-tax basis. By looking at cash flows before taxes, businesses can assess their financial performance and make decisions without the influence of tax considerations.

Step-by-step explanation:

Cash flows should always be considered on a before-tax basis. This means that taxes are not factored into the analysis of cash flows. By looking at cash flows before taxes, businesses can assess their financial performance and make decisions without the influence of tax considerations.