The best gauge of a company's ability to produce ample cash to continue as a going concern is net cash provided by:

Question

Quizplus · Accepted Answer

Net cash provided by operating activities is the best gauge of a company's ability to produce ample cash to continue as a going concern because it shows the amount of cash generated or used by the company's normal operations. This includes cash received from customers, cash paid to suppliers and employees, and other operating cash flows. Investing activities and financing activities are important considerations, but they do not provide as direct an indication of the company's ability to produce cash from its core business operations. Analytical activities are not relevant in this context.

The Best Gauge of a Company's Ability to Produce Ample