Free Cash Flow Is Equal to Cash Flow from Operating

question 37

Multiple Choice

Free cash flow is equal to cash flow from operating activities

• A)plus capital expenditures, minus dividends.
• B)minus capital expenditures, plus dividends.
• C)plus capital expenditures, plus dividends.
• D)minus capital expenditures, minus dividends.

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Definitions:

Capital Investment Analysis

The process by which management plans, evaluates, and controls long-term capital investments involving property, plant, and equipment.

Fixed Assets

Fixed Assets are long-term tangible assets purchased for use in business operations, intended to be used for more than one accounting period.

Long-term Investment

Investments made by a company to hold for more than one year, often in bonds, stocks, or real estate.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.