Asked by Prince Osman on May 12, 2024
Verified
Operating income and cash flow are examples of metrics used to assess a company's financial condition.
Operating Income
The profit generated from a company's everyday business operations, excluding income from investments and extraordinary items.
Financial Condition
The Financial Condition of a business refers to its ability to manage its debts and fulfill its financial obligations, assessed through its financial statements.
- Determine the varieties of metrics utilized for evaluating a firm's financial status and their uses.
Verified Answer
TN
Tiffany NguyenMay 14, 2024
Final Answer :
True
Explanation :
Operating income measures a company's profit after subtracting operating expenses, while cash flow indicates the net amount of cash being transferred into and out of a business, both crucial for assessing a company's financial health.
Learning Objectives
- Determine the varieties of metrics utilized for evaluating a firm's financial status and their uses.
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