CFA Practice Question

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CFA Practice Question

Successful companies usually generate the largest percentage of their cash inflows (sources) in the long run from ______.

A. operating activities
B. investing activities
C. gains on the sale of plant assets
Correct Answer: A

Companies that are financed with operating cash flows are said to be internally financed. They have less need of debt and equity financing and do not need to sell assets to meet cash needs.

User Contributed Comments 2

User Comment
Inaganti6 When you have a lousy board and management in the long run the story is different!
dbedford In the long run you should be making the most money from what you are in the business of doing which is all the operating costs
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