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The Cash Flow on Total Assets Ratio Compared to the Total

question 48

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The cash flow on total assets ratio compared to the total assets ratio can be used as an indicator of earnings quality.


Definitions:

Cash Receipts Journal

A journal used to record all cash inflows or money received by the business.

Cash Received

The amount of money a business collects, normally in exchange for goods or services.

Customers Account

Refers to the individual accounts or ledgers maintained by a business to record transactions related to sales, returns, payments, and balances owing for each customer.

Cash Receipts Journal

A financial journal that tracks all cash inflows or money received by a business, including sales, loans, and investments.

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