Question

which of the following will calculating the operating cash flow ratio indicate? if enough assets are held by a business to cover its long - term liabilities if enough cash is generated by a business to cover its debts that will come due within the year if enough debt is held by a business in order to support steady growth

Explanation:

The operating cash flow ratio measures a company's ability to pay off its current liabilities (debts due within a year) using cash generated from its operations. The first option relates to long - term liabilities and assets, which is not what the operating cash flow ratio indicates. The third option is about the amount of debt for growth, not related to the operating cash flow ratio's purpose.

Answer:

B. if enough cash is generated by a business to cover its debts that will come due within the year