Practice mode Finance

Which equation is known as the cash flow (CF) identity?

Correct answer C. CF from Assets = CF to Creditors + CF to Stockholders

Explanation

The cash flow identity states that cash generated from a firm's assets must equal the total cash paid to its creditors plus the cash paid to its stockholders.

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Which equation is known as the cash flow (CF) identity?

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Which equation is known as the cash flow (CF) identity?

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