The document discusses the importance of cash flow activities for a company's long-term operations, identifying operating activities as the most critical. Operating activities are essential for determining a company's cash inflows and outflows and ultimately its net income. In contrast, it briefly mentions investing, financing, and noncash activities as other types of cash flow activities.

1. Which of the three types of activities reported on the statement of cash flows is the MOST
critical for a company's long-tetm OA. operating activities O B. investing activities O C.
financing activities O D. noncash investing and financing activities
Solution
A. Operating activities
This are the functions of business related to the provision of its offering. It is an activity that
directly affects an orgainzation's cash inflows and outflows, and determine its net income.