Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?
Correct answer: A. Operating Cash Flows
- A. Operating Cash Flows
- B. Investing Cash Flows
- C. Financing Cash Flows
- D. All of the given options
Explanation
Operating cash flows arise from routine business activities such as producing, selling, and collecting cash from customers. Investing cash flows relate to assets, while financing cash flows relate to debt and equity.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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