The ratio of cash to monthly cash expenses can be used to _____. a.assess how long a company with negative cash flows from inves

Question

3 years ago

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The ratio of cash to monthly cash expenses can be used to _____. a.assess how long a company with negative cash flows from inves

ting activities can continue to operate b.assess how long a company with negative cash flows from operations can continue to operate c.assess how long a company with positive cash flows from financing activities can continue to operate d.assess how long a company with positive cash flows from investing activities can continue to operate

Business

1 answer:

sp2606 [1] · Answer 1 · 2021-12-24T18:13:30+03:00

Answer:

The correct option is C. which is <em>assess how long a company with positive cash flows from financing activities can continue to operate</em>

Explanation:

<em>The ratio of cash to monthly cash expenses can be used to make assessment of a company whether how long it can determine without additional financing and positive cash flows generated from operations.</em>

The formula of The ratio of cash to monthly cash expenses

= Cash s of year end ÷ Monthly Cash Expenses