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Which of the Following Best Describes Free Cash Flow

Question 25

Multiple Choice

Which of the following best describes free cash flow?


A) Free cash flow is the amount of cash flow available for distribution to all investors after all necessary investments in operating capital have been made.
B) Free cash flow is the amount of cash flow available for distribution to shareholders after all necessary investments in operating capital have been made.
C) Free cash flow is the net change in the cash account on the balance sheet.
D) Free cash flow is equal to net income plus depreciation.
E) Free cash flow is equal to the cash flow from non-taxable transactions.

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