The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:
A)operating cash flow.
B)net capital spending.
C)net working capital.
D)cash flow from assets.
E)cash flow to stockholders.

Question

Quizplus · Accepted Answer

The cash flow from assets (CFFA) is the cash flow available for distribution to the firm's creditors and stockholders. It is calculated as operating cash flow minus net capital spending and changes in net working capital. The other options listed are components of CFFA but do not represent the total cash flow available for distribution to creditors and stockholders.

The Cash Flow of a Firm Which Is Available for Distribution