Cash flows from operational activities show any cash used to buy fixed assets and longterm financial investments.

Question

Cash flows from operational activities show any cash used to buy fixed assets and long­term financial investments.

Quizplus · Accepted Answer

Cash flows from operational activities represent the cash generated or used in the normal course of business operations, such as the receipt of cash from customers and payment of cash for operating expenses. Cash used to buy fixed assets and long-term investments would be reflected in cash flows from investing activities.

Cash Flows from Operational Activities Show Any Cash Used to Buy