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Accounting / July 19, 2018 / Khloe Santiago

Some analysts use free cash flow instead of cash flow from operations because that measure subtracts cash used for capital expenditures. Using free cash flow instead of cash flow from operations may, therefore, indicate that the company is less able to meet its obligations.

Current Assets represents those assets which can be easily transformed into cash within one year. On the other hand, current liabilities refers to those obligations which are to be paid within an accounting year.

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