The best measure of a company's ability to generate sufficient cash to continue as a going concern is net cash provided by
A) financing activities.
B) investing activities.
C) operating activities.
D) processing activities.

Question

Quizplus · Accepted Answer

Net cash provided by operating activities is the best measure of a company's ability to generate sufficient cash to continue as a going concern. This figure represents the cash flow resulting from the company's primary business activities, such as sales of goods and services, and is a more reliable indicator of future cash flow than financing or investing activities. Processing activities are not a recognized category in financial reporting.

The Best Measure of a Company's Ability to Generate Sufficient