Modified True or False ( T means TRUE and F means FALSE)

S1. The concept of free cash flow might also be used in cash flow forecasts.

S2. Free cash flow is the amount of surplus cash flow (or the cash flow deficit) after allowing for all cash payments that are essential and discretionary.

S3. Free cash flow is the amount of cash flow that management are able to use at their discretion for any purpose.

S4. Free cash flow does not have an exact definition, and there may be differences in assumptions about essential cash flows. However, a useful definition of free cash flow is as follows.

Group of answer choices

T , T, T, F

F, T, T, F

F, F, F, F

F, F, T, T

T, F, T, T

T, F, T, T