Which One of These Would Not Be Paid from Free

question 44

Multiple Choice

Which one of these would not be paid from free cash flow?

• A)cash dividends.
• B)repayment of principal on a long-term debt.
• C)repurchase of outstanding shares of common stock.
• D)new equipment purchase.

---

Definitions:

Liability Subsections

Refers to the various divisions or categories within liabilities on a balance sheet, detailing different types of obligations a company holds.

Current Liabilities

Financial obligations a company is expected to pay within one year, including accounts payable, short-term loans, and accrued expenses.

Asset Subsections

Categorizations within a company's assets on the balance sheet to provide detailed financial information.

Current Assets

Assets that are expected to be converted into cash, sold, or used up within one year or within the business's operating cycle, whichever is longer.