The Statement Concerning the Cash Flow Ratio That Is True

question 37

Multiple Choice

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

• A)The cash flow ratio compares the cash flow from operating activities with the current liabilities.
• B)The cash flow ratio it is used to assess liquidity.
• C)The cash flow ratio is a better measure of liquidity than the current ratio because it calculated using cash flow generated over a whole reporting period rather than the current assets at a point in time.
• D)all the statements are true

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Definitions:

Saturated Fatty Acids

Fatty acids with no double bonds between carbon atoms, usually solid at room temperature and found in animal fats.

Hydrophilic Functional Groups

Chemical groups attached to molecules that are attracted to water, making the molecule soluble in water.

Soluble

Capable of being dissolved in a solvent, typically referring to substances that can dissolve in water.

Oxygen Atoms

Fundamental particles that make up oxygen gas (O2), essential for cellular respiration and critical to life's biochemical processes.