Question

how is the operating cash flow ratio calculated?
dividing operating cash flows by current liabilities
dividing cash and accounts receivable by current liabilities
dividing current assets by current liabilities

Explanation:

The operating cash flow ratio is calculated as operating cash flows divided by current liabilities. The second option involves cash and accounts receivable (not the correct components for this ratio), and the third option is the current ratio (current assets/current liabilities), not the operating cash flow ratio.

Answer:

A. dividing operating cash flows by current liabilities