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

Question

Quizplus · Accepted Answer

While all three types of business activities are important, it depends on the specific situation and stage of the business being evaluated. For example, for a startup company, investing activities may be more important as they are likely investing heavily in their business. However, for an established company, financing activities may be more significant as they may be issuing or repurchasing stock, paying dividends, or obtaining loans.

Of the Three Types of Business Activities Reported on a Statement