Which of These Statements Related to Free Cash Flow Is

question 49

Multiple Choice

Which of these statements related to free cash flow is correct?

• A) Free cash flow must be fully distributed to the firm's debtors and shareholders.
• B) Free cash flow must be positive for a firm to acquire new fixed assets.
• C) All, or part, of free cash flow can be used to increase a firm's cash reserves.
• D) When capital expenditures are positive, free cash flow will exceed the cash flow from operations.

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Definitions:

Correlations

Statistical measures that indicate the extent to which two or more variables fluctuate together.

Cognitive Psychologists

Scientists who study the mental processes underlying perception, thought, learning, memory, and decision-making.

Mental Represent

The mental imagery or symbolic representation of objects, events, or concepts in the mind.

Perception

The process by which organisms interpret and organize sensory information to represent and understand the environment.