Operating Cash Outflows Would Include

question 10

Multiple Choice

Operating cash outflows would include:

• A) Purchase of investments.
• B) Purchase of equipment.
• C) Payment of cash dividends.
• D) Purchases of inventory.

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Definitions:

Operating Cash Flow

Operating Cash Flow refers to the cash generated from a company’s normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Long-term Solvency

A measure of a company's ability to meet its long-term financial obligations, indicating its financial health and stability over time.

Interest Coverage

A financial metric used to determine how easily a company can pay interest expenses on outstanding debt with its before-tax income.

Quick Ratios

A liquidity metric that measures a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.