The main source of cash for a business must come from operating activities if it is to prosper in the future.

Question

Quizplus · Accepted Answer

Operating activities are the core business operations that generate revenue and cash flow. Therefore, it is crucial for a business to have a positive cash flow from operating activities to sustain and grow its operations. While financing and investing activities can provide additional cash inflows, they are not the main source of cash for a business.

The Main Source of Cash for a Business Must Come