The cash flows provided, or used, by _______ activities indicate a company's ability to generate cash.
A)operating
B)investing
C)financing
D)all of these answer choices are correct

Question

Quizplus · Accepted Answer

Operating activities refer to a company's core business activities, such as sales and production, which generate cash inflows. Therefore, the cash flows from operating activities provide insights into a company's ability to generate cash and are a key indicator of its financial health. Investing and financing activities, on the other hand, involve the use of cash for investments in assets or for capital raising, respectively, and do not necessarily reflect a company's ability to generate cash from its core operations.

The Cash Flows Provided, or Used, by _______ Activities Indicate