A banker contemplating a loan to a company should focus on which section(s) of the cash ﬂow statement in order to determine the company's ability to repay the loan?
A) Operating activities
B) Operating and ﬁnancing activities
C) Investing activities
D) Operating and investing activities

Question

Quizplus · Accepted Answer

Operating activities section of the cash flow statement provides insight into the cash generated from the company's core business operations, which is crucial for assessing its ability to repay loans.

A Banker Contemplating a Loan to a Company Should Focus