The statement of cash flows has classifications of
A)operating,investing,and debt activities.
B)investing,operating,and expense activities.
C)operating,investing,and equity activities.
D)operating,financing,and equity activities.
E)operating,investing,and financing activities.

Question

Quizplus · Accepted Answer

The statement of cash flows has three classifications: operating activities, investing activities, and financing activities. Operating activities include cash flows related to daily business activities, such as sales and purchases of inventory. Investing activities include cash flows related to the acquisition or disposal of long-term assets, such as property or equipment. Financing activities include cash flows related to the borrowing or repayment of debt, as well as the issuance or repurchase of stock. Therefore, choice E is the best answer as it correctly identifies the three classifications of the statement of cash flows.

The Statement of Cash Flows Has Classifications of