Operating cash flows ÷ current liabilities is the formula for the:
A) repayment of long-term borrowing ratio.
B) current ratio.
C) cash flow from operations ratio.
D) none of the above

Question

Quizplus · Accepted Answer

The formula "Operating cash flows ÷ current liabilities" is used to calculate the cash flow from operations ratio, which measures a company's ability to cover its current liabilities with the cash flow generated from its core business operations.

Operating Cash Flows ÷ Current Liabilities Is the Formula for The