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Why Is the Operating Activities Section Often Believed to Be

Question 45

Multiple Choice

Why is the operating activities section often believed to be the most important part of a statement of cash flows?


A) It indicates a company's ability to generate cash from sales to meet current cash needs.
B) It shows the net increase or decrease in cash during the period.
C) It gives the most information about how operations have been financed.
D) It shows the dividends that have been paid to shareholders.

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