The order of presentation of activities on the statement of cash flows is
A) operating, investing, and financing
B) operating, financing, and investing
C) financing, operating, and investing
D) financing, investing, and operating

Question

Quizplus · Accepted Answer

The order of presentation of activities on the statement of cash flows is operating, investing, and financing. This is the standard order that is followed in accordance with the generally accepted accounting principles (GAAP). By presenting operating activities first, followed by investing and financing activities, users of the statement are able to better understand how the company generates and uses its cash.

The Order of Presentation of Activities on the Statement of Cash