The statement of cash flows identifies cash flows separated into operating, investing, and financing activities over a period of time.

Question

Quizplus · Accepted Answer

This is a correct definition of the statement of cash flows. It presents the inflows and outflows of cash over a period, which are classified into operating activities (related to the core business), investing activities (related to investments in property, plant, and equipment, or other securities), and financing activities (related to the raising and repayment of funds). The statement of cash flows is an important tool for analyzing a company's liquidity and solvency.

The Statement of Cash Flows Identifies Cash Flows Separated into Operating