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The cash flow on total assets ratio is calculated by: Multiple Choice Dividing average total assets...

The cash flow on total assets ratio is calculated by:

Multiple Choice

  • Dividing average total assets by cash flows from financing activities.

  • Total cash flows divided by average total assets times 365.

  • Dividing total cash flows by average total assets.

  • Dividing average total assets by total cash flows.

  • Dividing cash flows from operations by average total assets.

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Answer #1

Ans. Option 5th

Explanation: In cash flow on total assets ratio, cash flow leads to cash flow from operations (nominator) and assets are used as a denominator for the calculation of this ratio.

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