Information about a company's operating capability may be helpful to external users in
A) assessing the uncertainty of its future cash flows
B) evaluating the timing of cash flows in the near future
C) evaluating the efficiency with which the company company uses its resources to generate revenue
D) assessing a return of investment as well as a return on investment

Question

Quizplus · Accepted Answer

Evaluating the efficiency with which a company uses its resources to generate revenue provides insights into its operating capability, which is crucial for understanding how well the company can sustain and improve its operations.

Information About a Company's Operating Capability May Be Helpful to External