Cash from (or used in) operating activities is the
A) heart of cash flow.
B) cash paid to outsiders such as banks or stockholders.
C) cash received from selling stock or assets.
D) cash at the beginning and end of the period covered.

Question

Quizplus · Accepted Answer

Cash from (or used in) operating activities is the heart of cash flow because it represents the cash generated or used by a company's core business activities, such as sales and expenses. This is the cash flow that reflects the company's ability to generate cash from its normal operations. Choices B, C, and D refer to other types of cash flows.

Cash from (Or Used In) Operating Activities Is the