All of the Following Statements About Free Cash Flow Are

question 163

Multiple Choice

All of the following statements about free cash flow are false except:

• A) Significant free cash flow indicates less potential to finance new investments.
• B) Free cash flow is most commonly calculated by subtracting capital expenditures from cash provided by operations and then adding cash dividends.
• C) Free cash flow is not reported on the statement of cash flows.
• D) Significant free cash flow indicates less potential to pay additional dividends.

---

Definitions:

Private Property

Land or possessions owned by individuals or entities and not by the government or public.

Public Use

The use of land or resources for the benefit and welfare of the general public.

Universal Declaration

Refers typically to the Universal Declaration of Human Rights, a historic document adopted by the United Nations General Assembly that outlines the rights and freedoms to which all human beings are entitled.

Mother Earth

A term that personifies the planet Earth, emphasizing its life-giving and nurturing aspects.