Final answer:
Measuring cash flow entails analyzing the income statement and balance sheet to assess a company's liquidity and financial health over a certain period. The correct answer is option A.
Step-by-step explanation:
Measuring cash flow involves analyzing the income statement and balance sheet. It's an essential process for understanding how much cash is generated or used by a business over a certain period. Cash flow can be from operating, investing, or financing activities. When assessing a company's financial health, analysts review cash flow alongside other financial statements to determine its ability to settle debts, reinvest, and return money to shareholders.