The investing activities section of the statement of cash flows is the most important section.

Question

Quizplus · Accepted Answer

The operating activities section is generally considered to be the most important section of the statement of cash flows, as it shows the company's ability to generate cash from its core business operations. The investing activities section shows the cash flows related to the purchase and sale of long-term assets, which may be important but are not as critical to understanding a company's financial health as its operating cash flows.

The Investing Activities Section of the Statement of Cash Flows