Cash flows from operating activities is the default classification in a statement of cash flows

Question

Quizplus · Accepted Answer

Cash flows from operating activities is indeed the default classification in a statement of cash flows, as it reports the cash inflows and outflows resulting from the primary activities of a company, such as sales, purchases, and expenses. Other classifications, such as cash flows from investing and financing activities, are reported separately when relevant transactions occur.

Cash Flows from Operating Activities Is the Default Classification in a Statement