Reading 34: Understanding the Cash Flow Statement - LOS i, ability, measures, following, describes, best

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Q1. Which of the following best describes a ratio that measures a firm’s ability to acquire long-term assets with cash flows from operations, and a performance ratio, respectively?

         Acquire assets with CFO           Performance ratio

 

A) Investing and financing ratio      Cash-to-income ratio

B) Reinvestment ratio                         Debt payment ratio

C) Reinvestment ratio                         Cash-to-income ratio

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