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Free Cash Flow Is Net Cash Provided by Operating Activities

question 65

True/False

Free cash flow is net cash provided by operating activities less capital expenditures.

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Definitions:

Issuing Debt

The process by which corporations or governmental entities raise money for operations, investment, or financing by issuing bonds, notes, or other forms of debt instruments to investors.

Lending Money

The act of providing funds to another party with the expectation of being repaid, usually with interest, over a specified period of time.

Investments

Assets purchased with the goal of generating income or appreciating in value over time.

Investing Activity

Transactions involving the purchase and sale of long-term assets and other investments not generally considered as cash equivalents.

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