Discrete Classification Refers to __________, While Continuous Classification Is Also

question 24

Multiple Choice

Discrete classification refers to __________, while continuous classification is also called __________.

• A) statistical classification; normative classification
• B) categorical classification; dimensional classification
• C) critical classification; current classification
• D) dimensional classification; categorical classification
• E) directional classification; bi-directional classification

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Definitions:

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.