Free Cash Flow Is Equal to the Cash Flow from Operating

question 48

Multiple Choice

Free cash flow is equal to the cash flow from operating activities less cash payments:

• A) to retire bonds.
• B) for inventory purchases.
• C) for planned investments and cash dividends.
• D) for planned salary raises.

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Definitions:

Investment Companies

Firms that invest the funds of their clients into securities that match declared financial objectives.

Code-Law Country

A country where the legal system is based on a comprehensive, codified set of laws, as opposed to common law systems.

Financial Institution Regulators

Authorities or bodies that oversee the operations and compliance of financial institutions to ensure stability and integrity in the financial system.

NFPs

Not-For-Profit organizations, which operate for purposes other than making a profit for owners or shareholders.