A Firm's Free Cash Flow (FCF) Equals the Sum of Operating

question 142

True/False

A firm's free cash flow (FCF) equals the sum of operating cash flows, financing cash flows, and investing cash flows.

---

Definitions:

Warehouse

A facility for storing goods, merchandise, and materials before they are distributed for sale or use.

Quality Costs

Expenses related to ensuring products or services meet company and customer quality standards, including prevention, appraisal, and failure costs.

Appraisal Costs

Costs that are incurred to identify defective products before the products are shipped to customers.

Quality Costs

Expenses associated with preventing, detecting, and correcting defective work, including costs of inspections, tests, and warranties.