Which of the following is the primary source of cash over the life of a business?
A)Financing activities
B)Operating activities
C)Investing activities
D)None of the above

Question

Quizplus · Accepted Answer

Operating activities are the primary source of cash over the life of a business as they involve the day-to-day operations and transactions of the business, which generate revenue and cash inflows. Financing activities involve obtaining capital from investors or lenders, while investing activities involve the acquisition or sale of long-term assets, such as property or equipment. While these activities may also generate cash inflows or outflows, they are not the primary source of cash over the life of the business.

Which of the Following Is the Primary Source of Cash