Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income.

Question

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Cash flow from investing activities represents the cash flows related to the purchase or sale of long-term assets such as property, plant, and equipment, and investments. While it is an important category to track, it is not necessarily considered the best measure of expected income. The net income or earnings per share are better measures for expected income.

Cash Flow from Investing Activities Is Considered the Most Important