Negative cash flow from operating activities on the statement of cash flows most likely indicates a company is ________.
A)borrowing more than it is paying off
B)buying more long-term assets than it is selling
C)paying off more of its debts than it is borrowing
D)in poor financial health

Question

Quizplus · Accepted Answer

Negative cash flow from operating activities indicates that the company is not generating enough cash from its primary operations to cover its expenses, which may lead to difficulty in paying bills and loans, and ultimately indicates poor financial health.

Negative Cash Flow from Operating Activities on the Statement of Cash