On a Statement of Cash Flows,cash flows are grouped into the following three categories listed in the proper order:
A)Operating activities,Investing activities,and Financing activities.
B)Operating activities,Financing activities,and Investing activities.
C)Investing activities,Operating activities,and Financing activities.
D)Financing activities,Investing activities,and Operating activities.

Question

Quizplus · Accepted Answer

The proper order for grouping cash flows on a Statement of Cash Flows is Operating activities, Investing activities, and Financing activities. This order reflects the typical cash flow process for a business, starting with operations (such as sales, expenses, and taxes), then investing in assets (such as property, plant, and equipment), and finally obtaining financing (such as issuing stock, borrowing money, or paying dividends). Therefore, choice A is the best answer.

On a Statement of Cash Flows,cash Flows Are Grouped into the Following