Generating cash from investing activities is the preferred method for obtaining excess cash.

Name: Generating cash from investing activities is the preferred method for obtaining excess cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Generating cash from operating activities is generally considered the preferred method for obtaining excess cash because it indicates that the company's core business operations are healthy and profitable. Cash from investing activities often comes from selling assets, which isn't sustainable long-term.

Generating Cash from Investing Activities Is the Preferred Method for Obtaining