The cash remaining with the firm after paying its operating expenses, making payments to creditors, and taxes is called:
A) earnings per share.
B) capital contributed in excess of par.
C) residual cash flows.
D) assets.

Question

Quizplus · Accepted Answer

The term "residual cash flows" refers to the cash that remains with the firm after all of its expenses and obligations have been paid, including operating expenses, payments to creditors, and taxes. This cash can be used for various purposes, such as reinvestment in the business, paying dividends to shareholders, or investing in new ventures. Earnings per share and capital contributed in excess of par are specific financial metrics that do not necessarily represent the total cash available to the firm. Assets refer to the total value of the firm's holdings and investments, and may include both cash and non-cash items.

The Cash Remaining with the Firm After Paying Its Operating