Which of the Following Is NOT an Example of an Operating

question 42

Multiple Choice

Which of the following is NOT an example of an operating cash flow?

• A) management fees and distributed overhead
• B) royalties and license fees
• C) rent and lease payments
• D) dividend paid to parent company

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Definitions:

EBIT

A financial metric that calculates a company's profit by including all costs except for interest and income tax expenses, known as Earnings Before Interest and Taxes.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures needed for operations. It is an important measure of financial performance and liquidity.

Capital Expenditures

Long-term investments made by a company in buildings, equipment, or other assets to improve or maintain its business operations.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.