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

Question

Quizplus · Accepted Answer

Cash flows from operating activities provide information on the company's ability to generate cash from its regular business operations. These cash flows are considered to be the best measure of a company's ability to continue as a going concern, as they indicate the company's ability to generate cash over a sustained period of time. Cash flows from investing and financing activities may be important, but they are not as directly related to a company's ongoing operations. Additionally, the category that is considered the best measure of a company's ability to continue as a going concern is not usually different from year to year.

The Category That Is Generally Considered to Be the Best