The cash flow on total assets ratio is calculated by:
A)Dividing cash flows from operations by average total assets.
B)Dividing total cash flows by average total assets.
C)Dividing average total assets by cash flows from financing activities.
D)Dividing average total assets by total cash flows.
E)Total cash flows divided by average total assets times 365.

Question

Quizplus · Accepted Answer

The cash flow on total assets ratio is calculated by dividing cash flows from operations by average total assets. This ratio measures the amount of cash generated by a company from its operating activities for each dollar of assets it owns.

The Cash Flow on Total Assets Ratio Is Calculated By