When assessing sustainability of a firm's cash flows,analysts will prefer to see cash growth generated from which of the following sources?

Question

Quizplus · Accepted Answer

Cash flow from operating activities reflects the sustainable cash flow generated by a company's core business operations, which is the type of cash flow analysts prefer when assessing the company's sustainability. Cash flow from investment activities and financing activities may yield variable and less reliable cash flow, while cash flow from extraordinary events is not considered sustainable as it is often a one-time occurrence.

When Assessing Sustainability of a Firm's Cash Flows,analysts Will Prefer