Which of the following statements is correct?

Business

1 answer:

Mekhanik [1.2K]2 years ago

3 0

Answer:

The correct statement is:

b. Two metrics that are used to measure a company's financial performance are net income and free cash flow. Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on free cash flows as they do on net income.

Explanation:

Net income and free cash flow are profitability measures. While net income measures profitability by including all expenses: cash and non-cash, free cash flow measures profitability by excluding the non-cash expenses but instead includes spending on assets and working capital periodic changes.

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