All of the following statements about free cash flow are false except
A)significant free cash flow indicates less potential to finance new investment.
B)free cash flow is most commonly calculated by subtracting capital expenditures from cash provided by operations and then adding cash dividends.
C)free cash flow is not reported on the statement of cash flows.
D)significant free cash flow indicates less potential to pay additional dividends.

Question

Quizplus · Accepted Answer

Free cash flow is not reported on the statement of cash flows; it is a measure derived from the cash flow statement to assess the cash a company generates after accounting for capital expenditures.

All of the Following Statements About Free Cash Flow Are