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My daughter lost or had her phone stolen. I do not believe she had her find my phone on. She went on to find friends through the icloud and it is showing a location for her phone. We are wondering if this is actually where her phone is. Or what is the app basing this information on.

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If she didn't have Find Friends turned on (it is on by default so she would've had to turn it off) then what you're seeing is the last location the iPhone reported whenever it reported it's location last.

If she's looking at it thru iCloud, perhaps she does have the Find My iPhone installed. This is where a user can locate their own device. The device needs to be on and online to report its location. If she see's her iPhone and it has a green dot, that means it's currently online. If it's a gray dot, the iPhone is offline. If it last reported its location within 24 hours, you'll see the date/time. If it's longer than 24 hours, you'll just see 'offline'.

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