The Statement Concerning the Cash Adequacy Ratio That Is True

question 42

Multiple Choice

The statement concerning the cash adequacy ratio that is true is:

• A)It expresses the cash flow from operating activities as a percentage of capital expenditure plus dividends
• B)It measures the entity's ability to reinvest in its operations and to make distributions to owners from its operating cash flow
• C)A ratio result greater than one suggests a good performance
• D)All the statements are true