Which of the three types of activities reported on the statement of cash flows is the most critical?
A) Investing activities
B) Operating activities
C) Financing activities
D) Investing and financing activities

Question

Quizplus · Accepted Answer

Operating activities are the most critical because they reflect the company's ability to generate cash from its core business operations. This information is important to investors and creditors in assessing the company's financial health and determining its ability to repay debt, pay dividends, and invest in future growth. Investing and financing activities are also important, but they are more focused on the company's long-term strategy and capital structure.

Which of the Three Types of Activities Reported on the Statement