Which activities represent the company's primary source of cash over the life of the business?
A) financing activities
B) investing activities
C) operating activities
D) buying and selling activities

Question

Quizplus · Accepted Answer

Operating activities represent the company's primary source of cash over the life of the business as they are the day-to-day business activities that generate revenue and incur expenses. These activities include sales of goods or services, payment of suppliers, employee salaries, and other operational expenses. Financing activities include actions such as borrowing or repaying loans, issuing or buying back shares, and paying dividends. Investing activities involve buying or selling long-term assets such as property, plant, and equipment or investments in other companies. Buying and selling activities do not accurately represent a specific category and are not typically used to describe a company's primary source of cash.

Which Activities Represent the Company's Primary Source of Cash Over