The category that is generally considered to be the best measure of a company's ability to continue as a going concern is:
A) cash flows from investing activities.
B) usually different from year to year.
C) cash flows from operating activities.
D) cash flows from financing activities.

Question

Quizplus · Accepted Answer

Cash flows from operating activities are generally considered to be the best measure of a company's ability to continue as a going concern because they represent the cash generated by a company's core business operations. These cash flows are less volatile than cash flows from investing or financing activities, which can be influenced by one-time transactions or external factors. Additionally, a company's ability to generate positive cash flows from its normal business activities is crucial for long-term sustainability.

The Category That Is Generally Considered to Be the Best