The basic purpose of measuring cash flow is to estimate how much
A) net cash a company has during a given period.
B) money customers owe a company.
C) time is left before a company goes bankrupt.
D) return stockholders can expect during a given period.

Question

Quizplus · Accepted Answer

Measuring cash flow allows us to estimate the net cash a company has during a given period, which is useful in understanding a company's liquidity and ability to pay its bills, make investments, and return funds to shareholders. Options B and C refer to other financial metrics, while D may be related but not the primary measure addressed by cash flow analysis.

The Basic Purpose of Measuring Cash Flow Is to Estimate