A Negative Free Cash Flow Means That All Cash Commitments

question 206

True/False

A negative free cash flow means that all cash commitments have been met.

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Definitions:

Double Diminishing-Balance

A method of accelerated depreciation which charges depreciation at a higher rate in the early years of an asset's life.

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over its useful life.

Retroactive Changes

Adjustments made to records, policies, or financial statements that apply to previous periods.