I want to convert flv files to mp4 because I want to cut them. Which setting is the best in order to keep best quality? I'm not sure but I assume that lossless extraction will extract the video without conversion and only will pack it in another container whereas same quality will convert it with the same settings as original i.e. bitrate etc. Is this right? Therefore I should choose losless extraction and wouldn't lose any quality?

Thanks in advance!