The operating activities section of the statement of cash flows is the most important section of the statement of cash flows.

Question

Quizplus · Accepted Answer

The operating activities section of the statement of cash flows shows the cash inflows and outflows related to the company's core operations. This section provides valuable insights into the company's ability to generate cash from its day-to-day activities, which is critical to its long-term sustainability. Therefore, it is considered the most important section of the statement of cash flows.

The Operating Activities Section of the Statement of Cash Flows