Free Cash Flow Is Equal to

question 55

Multiple Choice

Free cash flow is equal to

• A)cash flow from operating activities plus capital expenditures, minus dividends.
• B)cash flow from operating activities plus capital expenditures, plus dividends.
• C)cash flow from operating activities plus dividends, minus capital expenditures.
• D)cash flow from operating activities minus capital expenditures, minus dividends.

Understand the purpose and structure of supplementary records in accounting.

Compute and interpret accounts receivable turnover, and compare it with industry averages.

Identify and describe the methods used for estimating bad debts.

Prepare journal entries for transactions involving sales on credit terms, credit card sales, and accounting for bad debts.

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Definitions:

Sixteenth Amendment

An amendment to the U.S. Constitution that allows Congress to levy an income tax without apportioning it among the states or basing it on the U.S. Census.

U.S. Constitution

The supreme law of the United States that establishes the national government's framework and the fundamental rights of its citizens.

Income Taxes

Taxes imposed by the government on the income generated by individuals, businesses, and other entities.

Tax Court

A federal court that hears and adjudicates tax-related disputes and issues between taxpayers and the Internal Revenue Service.