Free Cash Flow Is Calculated as Net Cash Provided by Operating

question 35

Multiple Choice

Free cash flow is calculated as net cash provided by operating activities less

• A) capital expenditures.
• B) dividends.
• C) capital expenditures and dividends.
• D) capital expenditures and depreciation.

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Definitions:

Bank Reconciliation

The process of comparing and adjusting the balance shown in a company’s bank statement, as compared to the company’s own financial records.

Journal Entries

The basic method used in accounting to record transactions, involving debits and credits to appropriate accounts.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.

Bank Statement

A document issued by a bank detailing the transactions in an account over a specific period, showing deposits, withdrawals, and balances.