Question

Of the three major categories of activities on the statement of cash flows, some say the...

Of the three major categories of activities on the statement of cash flows, some say the operating activities are the most important. Defend this position.

Homework Answers

Answer #1
  • Three catagories of activities, the most important secton is the operating activity section of the statement of cash flow is generally taken as the most important section provides information relating to cash flow of the daily business operations.
  • according to the operating cash flow what is the generation of the cash out of the core or main line business of the company.
  • where as the investing and financing are the once life time activity
  • the cash flow to the debtors and creditors and other working capital component is the vast importance than the issuance of shares or once in life time purchas of land
  • by comparing the all three categories the cash towards the shareholders is from the operating activities
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