Q999
An earning of business which is available for free distribution to all stockholders and creditors is classified as
A.
free cash flows
AnswerB.
free distribution
C.
available income
D.
cash income
Answer: Option A
Solution
Answer: Option A
Solution:
An earning of business which is available for free distribution to all stockholders and creditors is classified as free cash flows. Free cash flow represents the cash a company generates after cash outflows to support operations and maintain its capital assets.