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 operating activities.
C)cash flows from financing 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 reflect the company's ability to generate cash from its regular operations. This category of cash flows includes cash received from customers, payments made to suppliers and employees, and other operating expenses. If a company is consistently generating positive cash flows from operating activities, it is more likely to be able to continue operating in the future. Cash flows from investing and financing activities can also provide important information about a company's financial health, but they do not directly reflect the company's ability to generate cash from its core operations.

The Category That Is Generally Considered to Be the Best