Changes in the current asset and current liability accounts are reported on the statement of cash flows, using the indirect method, as:
A)operating activities.
B)financing activities.
C)investing activities.
D)a mix of all of these.

Question

Quizplus · Accepted Answer

Changes in current asset and current liability accounts are typically included in the operating activities section of the statement of cash flows, using the indirect method. This section reports cash inflows and outflows related to the company's primary operations, including the impact of changes in working capital accounts like accounts receivable, inventory, and accounts payable. Financing activities relate to changes in long-term liabilities and equity, while investing activities relate to changes in long-term assets like property, plant, and equipment.

Changes in the Current Asset and Current Liability Accounts Are