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Georgia [21]
3 years ago
14

Accounting statements represent a company's earnings, but this is not the real cash that a company generates. Earnings data can

be manipulated and can be deceiving. Thus, corporate decision makers and security analysts focus on the free cash flow that a firm generates to analyze the company's real cash position. Which of the following statements best describes free cash flow?
The excess cash generated by revenues less all operating expenses
The cash flow available for distribution to all investors after the company has made all investments in fixed assets and working capital necessary to sustain a firm's ongoing operations
Business
1 answer:
Nadya [2.5K]3 years ago
4 0

Answer:

The cash flow available for distribution to all investors after the company has made all investments in fixed assets and working capital necessary to sustain a firm's ongoing operations

Explanation:

Free cash is an important factor in which the stockholder's are interested. Free cashflow determine the actual cash position that is available for the stockholder's after fulfilling all the capital and operational requirements. Its is the the net value of cash from operations and any capital expediture. Investors want see thaat if company has enough cash for dividend payment.

You might be interested in
As environmental uncertainties increase, managers must develop techniques and methods for collecting, sorting through, and inter
JulsSmile [24]

Answer:

Environmental responsibility is essential for companies to remain competitive in the long term, as society increasingly demands that organizations be agents of change in society and contribute to its development.

Therefore, there are several methods for an organization to be environmentally responsible, planning is necessary for the company to understand its micro and macro environment and how to contribute to the reduction of environmental impacts. Through environmental management, a company is able to plan actions that make it more sustainable, it is therefore necessary to use questionnaires, interviews, observation and reports, so that the actions developed are aligned with the environmental purposes of the company and the community where it operates.

Environmental management helps companies achieve total quality, as it reduces waste, improves job satisfaction, creates value for stakeholders and makes the company more positioned in the market.

5 0
3 years ago
F ZMW 51,000 cash is paid to buy land, the land is reported on the buyer's balance sheet at ZMW 51,000.
Tomtit [17]

Answer:

This is made due to the application of the cost principle or historical cost concept.

Explanation:

The cost principle or historical cost concept states that the assets, equities, and liabilities are required to be recorded on the financial records on the basis of their original cost. Thus as the cash paid is ZMW 51,000, the same is required to be recorded on the balance sheet of the buyer.

5 0
3 years ago
RL Inc., an American insurance company, attempted to sell life insurance in Spain. However, the company failed to understand tha
Hoochie [10]

Answer:

The correct option is C

Explanation:

A cultural misunderstanding occurs when something like a word, gesture, social context, object has different meaning in two cultures. sometimes the misunderstandings get resolved, sometimes it leads nowhere and other times it can escalate to anything from love to war.

So here RL Inc. misunderstood spain's culture with american culture and it lead nowhere for them.

4 0
3 years ago
What example best describes the market structure of monopolistic
kenny6666 [7]

Answer:

D

Explanation:

I think it is D a city government owns and operates all Waste Management Services .

3 0
3 years ago
When planning for college, you should consider: A. Visiting colleges during your junior year. B. Speaking with your school's col
Dominik [7]

D. All the above.

hope it helps!

5 0
3 years ago
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