What is the preferred method to generate cash in a firm?
A)Operating activities.
B)Investing activities.
C)Financing activities.
D)Investing and financing activities.

Question

Quizplus · Accepted Answer

Operating activities are the preferred method to generate cash in a firm. These activities are directly related to a company's primary business operations and include sales, collections from customers, payments to suppliers, and other regular business activities. Investing and financing activities can also generate cash, but they are typically not as reliable or sustainable as operating activities.

What Is the Preferred Method to Generate Cash in a Firm