Subtracting capital expenditures from the cash flow from operations results in:
A)Capital financing amount
B)Free cash flow
C)Cash flow from capital expenditures
D)Residual capital amounts

Question

Quizplus · Accepted Answer

Subtracting capital expenditures from cash flow from operations gives us free cash flow, which represents the amount of cash available for a company to use for other purposes such as paying dividends, investing in new projects, or paying off debt.

Subtracting Capital Expenditures from the Cash Flow from Operations Results