624FinanceMedium
Which of the following equation is known as Cash Flow (CF) identity?
ACF from Assets = CF to Stockholders – CF to Creditors
BCF to Stockholders = CF to Creditors + CF from Assets
CCF from Assets = CF to Creditors – CF to Stockholder
Correct answer
C. CF from Assets = CF to Creditors – CF to Stockholder
Explanation
CF from Assets = CF to Creditors – CF to Stockholder is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.