The primary source of cash over the life of a business is ________.
A)investing activities
B)financing activities
C)operating activities
D)None of the above

Question

Quizplus · Accepted Answer

Operating activities are the main source of cash for a business, as they involve the generation of revenue through sales of products or services. This revenue can then be used to cover expenses and invest in the growth of the business. Investing activities involve the purchase or sale of assets, such as property or equipment, and financing activities involve raising capital through debt or equity. While these activities can also generate cash, they are not the primary source of cash for a business.

The Primary Source of Cash Over the Life of a Business