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What financial metric measures the cash amount generated by core operational activities before accounting for financing or long-term investments?

AEBITDA
BNet Income
CFree Cash Flow to Equity (FCFE)
DOperating Cash Flow (OCF)

Explanation

* Operating Cash Flow (OCF) measures cash generated from standard operational business activities.
* Direct method or Indirect method starting from Net Income adjusted for non-cash expenses and working capital changes.
* Provides cash-backed confirmation of reported earning quality.

Exam Relevance
  • Topic: Financial Accounting
  • Subtopic: Cash Flow Analysis
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

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