Which one of the following is generally used as the basis for computing the cash flow per share?
A)operating cash flow
B)investment cash flow
C)financing cash flow
D)net cash increase
E)retained cash earnings

Question

Quizplus · Accepted Answer

Operating cash flow is generally used as the basis for computing cash flow per share, as it represents the cash generated by a company's core operations that is available to distribute to shareholders. Investment cash flow and financing cash flow are not used as the basis for computing cash flow per share, as they represent cash flows related to investments and financing activities, respectively. Net cash increase is not a basis for computing cash flow per share, as it is simply a measure of the change in a company's cash balance. Retained cash earnings may be relevant to the calculation of cash flow per share, but they are not typically used as the basis for the calculation.

Which One of the Following Is Generally Used as the Basis