In the statement of cash flows, cash flows from operating activities are cash flows directly related to purchase and sale of fixed assets.

Question

Quizplus · Accepted Answer

Cash flows from operating activities are cash flows related to day-to-day operations of the business, such as sales and expenses. Cash flows related to purchase and sale of fixed assets are classified under cash flows from investing activities in the statement of cash flows.

In the Statement of Cash Flows, Cash Flows from Operating