Examlex
Joanne and Dennis want to do all they can to expand their preschooler son's vocabulary. Which of the following would you recommend to them?
Cash Flow on Total Assets
A measure of the efficiency with which a company generates cash from its assets, calculated as cash flow from operations divided by total assets.
Ability to Meet Obligations
A financial assessment of whether a company or individual has the resources necessary to pay off their debts as they come due.
Return on Assets
A profitability ratio that measures how efficiently a company is using its assets to generate earnings.
Direct Method
In cash flow reporting, a method that shows the specific sources and uses of cash, categorizing cash flows into operating, investing, and financing activities.
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