Which of the Following Would Be the Most Useful in Determining

question 36

Multiple Choice

Which of the following would be the most useful in determining if a company has sufficient resources to continue operations in the short-term?

• A)The profit margin ratio.
• B)The return on assets ratio.
• C)The cash from operating activities.
• D)The cash from financing activities.

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Definitions:

Performance Measures

Metrics or indicators used to assess, track, and improve the efficiency and effectiveness of processes, employees, or organizations.

Senior Managers

Executives responsible for making high-level decisions and implementing policies within an organization.

Future Strategies

Plans and approaches developed to achieve long-term goals and navigate future business environments and challenges.

Business Plans

Detailed documents that outline a company's objectives, strategies, and financial projections.