Net Cash Provided by Operating Activities Divided by Average Total

question 48

Multiple Choice

Net cash provided by operating activities divided by average total liabilities equals

• A) current cash debt coverage.
• B) cash debt coverage.
• C) free cash flow.
• D) the current ratio.

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Definitions:

Addition

The mathematical process of combining two or more quantities to get a sum.

Exponentiation

A mathematical operation involving two numbers, the base and the exponent, where the base is raised to the power of the exponent.

Division

A method of mathematical operation involving the process of dividing one number by another to determine how many times the divisor fits into the dividend.

Evaluate

The process of assessing or determining the significance, worth, or condition of something, typically by careful appraisal and study.