Which of the Following Statements Concerning the Cash Flow Ratio

Multiple Choice

Which of the following statements concerning the cash flow ratio is true?

A) The cash flow ratio is a better measure of liquidity than the current ratio because it is calculated using cash flow generated over a whole reporting period rather than the current assets at a point in time.
B) The cash flow ratio is used to assess liquidity.
C) The cash flow ratio compares the cash flow from operating activities with the current liabilities.
D) All of the above statements are true.