The operating cash flow available for company use after purchasing the fixed assets that are necessary to maintain current operations is called the
A) free cash flow
B) modified cash flow
C) PPE cash flow
D) restricted cash flow

Question

Quizplus · Accepted Answer

Free cash flow is the amount of cash available to a company after it has invested in fixed assets required to maintain its current operations. It is a good indicator of a company's financial health and its ability to fund growth opportunities, pay dividends, and reduce debt. Modified cash flow, PPE cash flow, and restricted cash flow do not accurately describe the definition given in the question.

The Operating Cash Flow Available for Company Use After Purchasing