Of the three types of business activities reported on a statement of cash flows-operating, investing, and financing-financing activities are the most important when evaluating a business that is up and running.

Question

Quizplus · Accepted Answer

While financing activities can provide information on a company's ability to raise capital and manage debt, operating activities are the most important for evaluating ongoing business performance and cash flow generation.

Of the Three Types of Business Activities Reported on a Statement