Cash flow from assets shows the success or failure of the operating decisions,while cash flow to creditors examines a portion of how the firm is financing the operations.

Question

Quizplus · Accepted Answer

Cash flow from assets is a measure of a firm's success or failure in generating cash from its operating activities, such as sales and production. Cash flow to creditors, on the other hand, looks at how the firm is financing its operations and paying back loans or other debts. Therefore, the statement is true.

Cash Flow from Assets Shows the Success or Failure of the Operating