Where would you tell someone to find the information needed to compute the cash flow adequacy ratio?
A) the balance sheet only
B) the statement of cash flows and the notes to the statements
C) the statement of cash flows only
D) the income statement only

Question

Quizplus · Accepted Answer

The cash flow adequacy ratio requires information from both the statement of cash flows and the notes to the statements, as it involves comparing cash flow from operations to capital expenditures. The balance sheet and income statement alone do not provide enough detail to make this calculation.

Where Would You Tell Someone to Find the Information Needed