If a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow.
Answer the following statement true (T) or false (F)
False
Rationale: There is no reason to think that net income would be equal to FCF. For example, a company that is not growing might report zero net income yet have high FCF because of depreciation.
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Some research shows that the number one turnoff people identify is slow service
Indicate whether the statement is true or false
Which of the following is an addition to net income when the indirect method is used?
a. an increase in inventory b. a loss on sale of equipment c. a decrease in accounts payable d. an increase in accounts receivable
If working papers are not considered a part of the formal accounting records, then why are they used?
The following information was obtained from the general fund balance sheet of Lima Village on June 30, 20X9, the close of its fiscal year: Vouchers Payable$220,000 Inventory of Supplies 10,000 Fund Balance-Assigned for Encumbrances 40,000 Fund Balance-Nonspendable 10,000 Total Assets 304,000 On June 30, 20X9, what was Lima's unassigned fund balance in its general fund?
A. $34,000 B. $24,000 C. $84,000 D. $44,000