The capital acquisitions ratio (Cash Flow from Operating Activities ¸ Cash Paid for Property,Plant,and Equipment)reflects the portion of purchases of property,plant,and equipment financed from operating activities without the need for outside debt or equity financing or the sale of other investments or other long-term assets.

Question

Quizplus · Accepted Answer

The statement accurately describes the capital acquisitions ratio, which measures the extent to which a company's operating cash flow can fund its capital expenditures without resorting to external financing. A higher capital acquisitions ratio indicates greater self-sufficiency in funding investments, while a lower ratio may suggest a reliance on debt or other sources of funding.

The Capital Acquisitions Ratio (Cash Flow from Operating Activities ¸