Why is the operating section of the statement of cash flows significant when calculating the capital acquisitions ratio?

• A. It indicates the cash flow from investing activities, which is irrelevant to the ratio.
• B. It highlights the net income, which is used to calculate the ratio.
• C. It provides the cash flow from operating activities, which is used as the numerator in the ratio.
• D. It shows the cash flow from financing activities, which is used as the denominator in the ratio.

Answer: (C)