Companies that are considered to be in stronger financial health and better credit risks are able to satisfy most of their cash needs from
A)operating activities.
B)investing activities.
C)financing activities.
D)investing and financing activities.

Question

Quizplus · Accepted Answer

Companies that are in stronger financial health and better credit risks generate sufficient cash flow from their operating activities. This means they do not have to rely on external financing or investment activities to finance their operations or growth. Operating activities include revenue generation and cost management, which are fundamental activities of a company's core business operations.

Companies That Are Considered to Be in Stronger Financial Health