On the statement of cash flows,business operations are classified as operating,investing,or financing activities.

Question

Quizplus · Accepted Answer

This is because the statement of cash flows presents cash inflows and outflows for a certain period of time and categorizes them into these three activities. Operating activities involve transactions related to a company’s regular business activities, investing activities involve cash flows related to the acquisition or sale of long-term assets or investments, and financing activities involve cash flows related to obtaining or repaying funds from creditors or investors.

On the Statement of Cash Flows,business Operations Are Classified as Operating,investing,or