Probably the most important indicator of financial health is the net cash flow from
A) operating activities.
B) investing activities.
C) financing activities.
D) buying and selling activities.

Question

Quizplus · Accepted Answer

Net cash flow from operating activities is the cash generated or used in a company's core business operations. It reflects the company's ability to generate cash from its main operations and is a key indicator of its financial health. In contrast, cash flow from investing activities reflects the cash spent or earned from investing in assets such as property, plant, and equipment, and cash flow from financing activities reflects cash flows related to financing activities such as borrowing and issuing stock. Buying and selling activities do not directly relate to cash flow and are not a financial statement category.

Probably the Most Important Indicator of Financial Health Is the Net