The Net cash provided by financing activities is the most important category on the statement of cash flows because it generates the most cash for most companies.

Question

Quizplus · Accepted Answer

The statement is incorrect. The net cash provided by operating activities is usually the most important category on the statement of cash flows because it reflects the company's ability to generate cash from its primary operations. Financing activities can include borrowing or repaying debt, issuing or repurchasing stock, or paying dividends, and while significant, they typically do not generate as much cash as operating activities.

The Net Cash Provided by Financing Activities Is the Most