'Net cash flows from operating activities divided by current liabilities' is the formula for the:
A) quick ratio.
B) operating ratio.
C) debt coverage ratio.
D) cash flow ratio

Question

Quizplus · Accepted Answer

The formula used is the cash flow ratio, which measures a company's ability to cover its current liabilities with its net cash flows from operating activities. Therefore, the correct choice is D.

'Net Cash Flows from Operating Activities Divided by Current Liabilities