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)cash flows from financing activities.
C)cash flows from operating activities.
D)usually different from year to year.

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 or used by a company's normal operations, which is essential for a company's long-term sustainability. Cash flows from investing and financing activities can be volatile and may not necessarily reflect a company's ability to continue operating in the long run. Additionally, cash flows from operating activities are used to calculate important financial ratios such as cash flow coverage ratios and working capital ratios, which provide insight into a company's financial health and ability to meet its obligations.

The Category That Is Generally Considered to Be the Best