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

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 cash that a company generates from its core operations, which are necessary to sustain the business in the long run. Cash flows from financing and investing activities may provide valuable information about a company's financing and capital expenditures, but they do not necessarily reflect the company's ability to generate sustainable cash flows from its operations.

The Category That Is Generally Considered to Be the Best