Examveda
Examveda

An earning of business which is available for free distribution to all stockholders and creditors is classified as

A. free cash flows

B. free distribution

C. available income

D. cash income

Answer: Option A

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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