To assess a company's ability to generate positive future cash flows,the _________ activities section would be analyzed.

Question

Quizplus · Accepted Answer

The operating activities section shows the cash flows generated from a company's primary business operations, which is the main source of future cash flows. The financing and investing activities sections are not directly related to a company's ability to generate positive cash flows from its core operations. The noncash investing and financing activities section only shows non-cash transactions and does not provide information on the company's ability to generate positive future cash flows.

To Assess a Company's Ability to Generate Positive Future Cash