What Is a Measure of Operating Cash Flow Available for Corporate

question 49

Multiple Choice

What is a measure of operating cash flow available for corporate purposes after providing sufficient fixed asset additions to maintain current productive capacity and dividends?

• A) Venture cash flow
• B) Free cash flow
• C) Rigid cash flow
• D) Permanent cash flow

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and labor directly involved in production.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range or period.

Budgeted Balance Sheet

A projection of a company's financial position at the end of a specified period, forecasting assets, liabilities, and owner's equity.

Current Year

Refers to the present calendar year or fiscal year in which business operations and accounting transactions are being considered.