The Operating Cash Flow Ratio Measures

Multiple Choice

The operating cash flow ratio measures:

A) the company's ability to generate enough cash from daily operations to cover capital expenditures.
B) the company's ability to generate enough cash from daily operations to cover long-term liabilities.
C) the company's ability to generate enough cash from daily operations to cover current liabilities.
D) the company's ability to generate enough cash from financing operations to cover current liabilities.
E) None of the answer choices is correct.