The Operating Cash Flow Ratio Measures

question 66

Multiple Choice

The operating cash flow ratio measures:

• A)the company's ability to generate enough cash from daily operations to cover capital expenditures.
• B)the company's ability to generate enough cash from daily operations to cover long-term liabilities.
• C)the company's ability to generate enough cash from daily operations to cover current liabilities.
• D)the company's ability to generate enough cash from financing operations to cover current liabilities.
• E)None of the answer choices is correct.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, showing how much each value in the set varies from the mean.

Sampling Distribution

The probability distribution of a given random-sample-based statistic.

Sampling Distribution

A statistical distribution of all possible samples of a given size taken from a population.

Standard Deviation

A calculation that determines the amount of fluctuation or spread in a set of numbers.