In the statement of cash flows, the activities that affect cash flows are listed in the following order:
A) investing, financing, then operating.
B) operating, financing, then investing.
C) financing, operating, then investing.
D) operating, investing, then financing.

Question

Quizplus · Accepted Answer

The statement of cash flows is organized into three sections: operating activities, investing activities, and financing activities, in that order. Operating activities include the primary revenue-generating activities of the business. Investing activities involve the purchase and sale of long-term assets and investments. Financing activities include transactions involving debt, equity, and dividends.

In the Statement of Cash Flows, the Activities That Affect