Quiz – T/F: In finance, we are generally more interested in cash flows than in accounting profits

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition and 10th Edition

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Determine if the following statement is true or false:

In finance, we focus on cash flows rather than on accounting profits. Free cash flow (FCF) is calculated as after-tax operating income plus depreciation expense minus the sum of capital expenditures and changes in net operating working capital.

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  • Search Terms: a. b. false true (fcf) accounting after-tax and are as calculated capital capital. cash changes depreciation expenditures finance, flow flows free generally in income interested is less more net of operating plus profits. sum than the we working
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