I think the answer should be B. Cash flow from operating activities. Solvency is the ability of a company to meet its debt obligations. And the main sources of paying off debts should be from daily operating activities, not from investing or financing activities.
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MINH LE DUC CHIEU
Other
Orient Software Development Corporation
HO CHI MINH CITY
Viet Nam
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Original Message:
Sent: 05-19-2017 02:00 PM
From: Chaya Khannukar
Subject: CMA Pop Quiz - Q180
The answer is
4. flows from (used for) financing activities.
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Chaya
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Original Message:
Sent: 05-19-2017 10:46 AM
From: Morgan Greenleaf
Subject: CMA Pop Quiz - Q180
When using the statement of cash flows to evaluate a company's continuing solvency, the most important factor to consider is the cash
- balance at the end of the period.
- flows from (used for) operating activities.
- flows from (used for) investing activities.
- flows from (used for) financing activities.
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Morgan Greenleaf
Social Media & Marketing Product Specialist
IMA
Montvale NJ
United States
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