Which of the Following Ratios Should You Use If You

question 29

Multiple Choice

Which of the following ratios should you use if you want to assess whether a company's operating cash flows are sufficient to pay for PPE purchases?

• A)Capital acquisitions ratio.
• B)Debt-to-assets ratio.
• C)Quality of income ratio.
• D)Cash coverage ratio.

---

Definitions:

Gigabytes

A unit of digital information storage equal to 1,024 megabytes, often used to measure the capacity of memory or storage devices.

Cache Memory Levels

Refers to a hierarchy of cache storage that improves data access time by storing frequently used data in quick to access memory layers.

Proximity

The state or condition of being close or near; in technology, it often relates to the detection of and response to nearby objects or signals.

Machine Cycle

The series of steps a central processing unit goes through when it performs a program instruction.