Free Cash Flow Is Computed as Net Cash Flow from Operating

question 112

True/False

Free cash flow is computed as net cash flow from operating activities plus cash used to acquire plant assets minus cash paid for dividends.

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Definitions:

Sale

A transaction between two parties where goods, services, or assets are exchanged for money or other considerations.

Title

The legal right to own, use, or dispose of property, goods, or intellectual property.

Risk of Loss

The potential for an asset to be damaged, destroyed, or lost, and the consideration of who bears this responsibility until the asset is delivered.

Insurable Interest

A principle requiring that a person purchasing insurance has a legitimate interest in the continuation of the life, property, or event insured, enough to incur a financial loss if the insured risk occurs.