The Cash Flow Adequacy Ratio

question 50

Multiple Choice

The cash flow adequacy ratio:

• A)measures a company's ability to generate sufficient cash flow from investing to cover debt repayments.
• B)measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures and debt repayment.
• C)measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, inventory additions, and cash dividends.
• D)measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, debt repayment, and dividends.

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Definitions:

Schemas

Cognitive frameworks or concepts that help individuals organize and interpret information from the world around them.

Implicit Memories

Memories that are not consciously recalled but influence behaviors and skills, such as procedural memory for tasks.

Subliminal Stimuli

Stimuli presented below the threshold of conscious awareness, which can nonetheless affect thoughts, feelings, or actions.

Unconscious Thought

Mental processes that occur without conscious awareness, influencing behaviors, perceptions, and attitudes.