Continuing negative cash flow from which of the following activities can lead to bankruptcy?
A) Equity activities
B) Operating activities
C) Financing activities
D) Investing activities

Question

Quizplus · Accepted Answer

Operating activities generate cash flow from the primary business operations of a company. Continuing negative cash flow from operating activities means that the company is not generating enough cash to cover its daily operational expenses, which can eventually lead to bankruptcy. Negative cash flow from equity, financing, or investing activities can also be concerning, but they do not have as direct of an impact on a company's ability to maintain its day-to-day operations.

Continuing Negative Cash Flow from Which of the Following Activities