Large cash flows from operations are more important to financial statement analysts over the long term than cash flows from financing or investing.

Question

Quizplus · Accepted Answer

Cash flows from operations indicate the ability of a company to generate cash through its core business activities. This is important for the long-term sustainability of the business. Cash flows from financing and investing activities are more short-term in nature and do not necessarily reflect the underlying health of the business.

Large Cash Flows from Operations Are More Important to Financial