Which Statement Concerning the Cash Flow Adequacy Ratio Is Not

question 20

Multiple Choice

Which statement concerning the cash flow adequacy ratio is not correct?

• A) The ratio assesses the entity's ability to generate sufficient operating cash flow to cover its main cash requirements.
• B) The main requirements for cash from operations is to pay debts, acquire assets and pay dividends.
• C) A ratio of 100% or more over several years indicates an inadequate ability to general operating cash to cover requirements.
• D) A fall in the ratio indicates a lower ability to generate operating cash to meet requirements.

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Definitions:

Microaggressions

Brief and commonplace daily verbal, behavioral, or environmental indignities, whether intentional or unintentional, that communicate hostile, derogatory, or negative attitudes toward stigmatized or culturally marginalized groups.

Verbal Communications

The process of expressing ideas and exchanging information through spoken words.

Nonverbal

Communication without the use of spoken language, involving gestures, facial expressions, body language, and other visual cues to convey information or express emotions.

Denigrate

To unfairly criticize or disparage someone or something, often diminishing the subject's perceived value, dignity, or reputation.