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Match the Cash Flow Ratios to the Appropriate Descriptive Statement

Question 95

Matching

Match the cash flow ratios to the appropriate descriptive statement by placing the appropriate letter in the space provided

Premises:

Responses:

Allows users to understand how the earning of net income relates to the receipt of cash from operations.

Cash flow from operations to sales

Allows users to understand how much cash was generated from operations per common share.

Cash flow from operations to net income

Allows users to understand how much of each sales dollar is available for financing and investing activities.

Cash flow from operations per share

Allows users to measure the ability of a company to make principal payments.

Cash flow from operations to maturing debt

Premises:

Allows users to understand how the earning of net income relates to the receipt of cash from operations.

Allows users to understand how much cash was generated from operations per common share.

Allows users to understand how much of each sales dollar is available for financing and investing activities.

Allows users to measure the ability of a company to make principal payments.

Responses:

Cash flow from operations to sales

Cash flow from operations to net income

Cash flow from operations per share

Cash flow from operations to maturing debt

Correct Answer:

Premises:

Responses:

Allows users to understand how the earning of net income relates to the receipt of cash from operations.

Allows users to understand how much cash was generated from operations per common share.

Allows users to understand how much of each sales dollar is available for financing and investing activities.

Allows users to measure the ability of a company to make principal payments.