PUBLIC SERVICE COMMISSIONS

Global Search Engine

Your Favorite Questions

What does Cash Flow measure:

0
A) Profitability
B) Fixed assets value
C) Liquidity of a business
D) Market share

Correct Answer: C) Liquidity of a business

• The absolute primary purpose of a Cash Flow statement is to accurately measure the Liquidity of a business. • It strictly and carefully tracks the actual physical movement of liquid cash In and out of the company. • Cash flows generated from issuing shares or paying dividends are classified under Financing activities. • Cash flows directly related to daily core commercial operations are classified under Operating activities. • Purchasing heavy machinery is strictly recorded on the cash flow statement under Investing activities.

Advertisement

[ Ad Banner Space ]

Discussion (0)

Discussion mein hissa lene ke liye login karna zaroori hai.

Login / Register

Koi comment nahi. Sab se pehle aap apna comment karein!

Related Questions

Sub Categories

Leave a Reply / Ask a Question