Why Is the Operating Activities Section of the Statement of Cash

Multiple Choice

Why is the operating activities section of the statement of cash flows often believed to be the most important part of the statement?

A) Because it shows the dividends that have been paid to stockholders.
B) Because it indicates a company's ability to generate cash from sales to meet current cash payments for goods or services.
C) Because shows the net increase or decrease in cash during the period.
D) Because it gives the most information about how operations have been financed.