The statement of cash flows is organized into three sections: operating activities, investing activities, and financing activities.

Question

Quizplus · Accepted Answer

This is a true statement. The statement of cash flows is indeed organized into three sections: operating activities, investing activities, and financing activities. This is a commonly used format that helps investors and other financial statement users understand how a company generates and uses cash. The operating activities section shows cash flows related to the main activities of the business, while the investing activities section shows cash flows related to the buying and selling of long-term assets. The financing activities section shows cash flows related to raising or paying back capital, such as issuing or repurchasing stocks and bonds or paying dividends.

The Statement of Cash Flows Is Organized into Three Sections