Operating cash flow is best described as:

A) A firm's interest payments to creditors less net new borrowings.
B) Dividends paid out by a firm less net new equity raised.
C) Operating cash flow is also referred to as free cash flow.
D) The net difference between total assets and total liabilities.
E) The amount of cash used in operating the company.

Question

Bailey Gambrell · Accepted Answer

Final Answer : E, Explanation :  Operating cash flow refers to the cash generated by a company's normal business operations. It indicates whether a company can generate sufficient positive cash flow to maintain and grow its operations or whether it may require external financing. Choices A, B, C, and D describe other financial concepts that are not directly related to the operational cash flow generated from a company's core business activities.

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