The cash flows to total liabilities ratio measures
A) the percentage of a company's current liabilities that could be met with one year's investing cash flows.
B) the percentage of a company's long-term liabilities that could be met with one year's operating cash flows.
C) the percentage of a company's total liabilities that could be met with one year's operating cash flows.
D) the percentage of a company's current liabilities that could be met with one year's financing cash flows.

Question

Quizplus · Accepted Answer

The cash flows to total liabilities ratio indicates the percentage of a company's total liabilities that could be covered by its operating cash flows within a year.

The Cash Flows to Total Liabilities Ratio Measures