- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 23. Understanding Cash Flow Statements
- Subject 1. Classification of Cash Flows and Non-Cash Activities
CFA Practice Question
Successful companies generate the largest percentage of their sources (inflows) of cash in the long run from ______.
A. operating activities
B. investing activities
C. financing activities
Explanation: Successful companies are those that are consistently profitable. These profits or earnings are generated primarily through day-to-day operations providing goods and/or services that enhance cash flow.
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