Question:
What is free cash flow? Why is it the most important measure of cash flow?
See Also
Small Business Accounting: Using a Cash Flow Statement - Oregon Small Business Development Center NetworkState the Primary Objective of Preparing a Cash Flow StatementCash Flow Statement:
A cash flow statement helps in finding the net cash flow from operating, investing, and financing activities. Operating activities deal with activities related to generating revenue from regular activities of the entity; investing activities, on the other hand, are related to investments made and sold by the entity; and financing activities deal with activities affecting owners' equity and noncurrent liabilities.
Answer and Explanation:1
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Free cash flow is the amount of money left after the company pays off its operating expenses and capital expenditures. It can be calculated using...
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