In Finance,we Are Generally More Interested in Cash Flows Than

question 119

True/False

In finance,we are generally more interested in cash flows than in accounting profits.Free cash flow (FCF)is calculated as after-tax operating income plus depreciation less the sum of capital expenditures and changes in net operating working capital.​

Grasp the equity method adjustments for intra-entity inventory sales and unrecognized profits.

Comprehend the transition and accounting implications from fair-value method to equity method of accounting.

Acquire knowledge on the treatment of permanent loss in value of investments under the equity method.

Gain insights into how dividends and net income of investees affect the investor's financial statements under the equity method.

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Definitions:

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and motivate followers through their personality and actions.

Introverted

Introverted describes an individual's preference for internal reflection and the need for alone time to recharge, as opposed to seeking stimulation from external activities and social interaction.

Personal Identification

Involves the psychological process by which individuals associate themselves closely with persons, groups, or organizations, influencing their beliefs and behaviors.

Ultimate Form

The final or most developed version of something, after which no further evolution or refinement is expected.