Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income.

A. True.

B. False

Question

Business

Donte Arias

2 January, 23:43

Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income.

A. True.

B. False

+2

Answers (1)

Know the Answer?

Kaitlynn Ward · Answer 1

FALSE

Explanation:

From the investing activities the company will disclosure the use of cash in the acquisition or sale of long-term asset, other firms and short-term investment

The most important category is the operating activities as are generated from the firm main activity thus, it makes a fair representation of the ability to produce cash for the firm.

Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income.A. True.B. False

Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income.

A. True.

B. False