A company's main source of cash should be:
A)operating activities.
B)financing activities.
C)investing activities.
D)noncash investing and financing activities.

Question

Quizplus · Accepted Answer

Operating activities are the primary source of cash for a company, as they represent the day-to-day business operations that generate revenue and cash inflows. Financing activities (such as issuing debt or equity) and investing activities (such as buying or selling assets) may provide additional sources of cash, but they are usually not as consistent or reliable as operating activities. Noncash investing and financing activities represent items that do not directly affect cash flow, such as depreciation or stock-based compensation, and are not a primary source of cash.

A Company's Main Source of Cash Should Be