The three activities of the cash flow statement in order of importance,from most important to least important,are:
A)operating,financing and investing
B)operating,investing and financing
C)investing,operating and financing
D)financing,operating and investing

Question

Quizplus · Accepted Answer

Operating activities are the most important because they represent the day-to-day cash generating activities of a company. Investing activities come next as they represent the cash flows related to long-term investments such as property, plant, and equipment. Financing activities are the least important as they represent the cash flows related to financing the business, such as issuing or repurchasing stock, dividends paid or repaid to shareholders and borrowing or paying back loans.

The Three Activities of the Cash Flow Statement in Order