Question
Select all that are true with respect to the difference between the US GAAP Cash Flow Statement's definition of Cash Flow from Operating Activities and
Select all that are true with respect to the difference between the US GAAP Cash Flow Statement's definition of "Cash Flow from Operating Activities" and what I termed "Cash Flow from Operations" (which I also refereed to as "Free Cash Flow").
Group of answer choices
-US GAAP Cash Flow Statement's definition of "Cash Flow from Operating Activities" is identical to what I termed "Cash Flow from Operations" and "Free Cash Flow".
-What I termed "Cash Flow from Operations" and "Free Cash Flow" incorporates Capital Expenditures whereas the Cash Flow Statement's definition of Cash Flow from Operating Activities does not.
-Free Cash Flow is lower due to a firm's interest expense whereas The Cash Flow Statement's definition of Cash Flow from Operating Activities is not.
-The Cash Flow Statement's definition of Cash Flow from Operating Activities is reduced by a firm's interest expense whereas Free Cash Flow is not.
-Though not the same, one is conceptually closer to what I term Free Cash Flow if one combines the cash flow statement's Cash Flow from Operating Activities and its Cash Flow from Investing Activities.
-Paying dividends reduces Free Cash Flow, but not Cash Flow from Operating Activities.
-Interest expense reduces the Cash Flow Statement's Cash Flow from Operating Activities, but not Free Cash Flow.
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