Over the long term, successful companies generate positive cash flows from
A)operating activities.
B)investing activities.
C)financing activities.
D)other activities.

Question

Quizplus · Accepted Answer

Positive cash flows from operating activities indicate that a company is generating cash from its core operations and is able to sustain its business. Investing and financing activities are also important but are dependent on the success of the company's operations. Other activities might not be significant enough to generate sustainable positive cash flows.

Over the Long Term, Successful Companies Generate Positive Cash Flows