Which of the following would be the most useful in determining if a company has sufficient resources to continue operations in the short-term?
A)The profit margin ratio.
B)The return on assets ratio.
C)The cash from operating activities.
D)The cash from financing activities.

Question

Quizplus · Accepted Answer

Cash from operating activities is the amount of cash generated or used by a company's core operating activities. It is the most useful in determining if a company has sufficient resources to continue operations in the short-term because it shows the actual cash flow from the company's day-to-day operations. This is an important metric to assess a company's liquidity, as it indicates whether the company has sufficient cash on hand to cover its short-term expenses.

Which of the Following Would Be the Most Useful in Determining