Which of the following sections of the statement of cash flows include activities that affect Net Income on the income statement? (Assume the indirect method is used.)
A)the financing section
B)the operating section
C)the investing section
D)the non-cash investing and financing section

Question

Quizplus · Accepted Answer

The operating section of the statement of cash flows includes activities that affect net income on the income statement, such as adjustments for non-cash revenue and expenses (such as depreciation and amortization), changes in operating assets and liabilities (such as accounts receivable and accounts payable), and other operating activities. The financing section and investing section primarily include cash flows related to financing and investing activities, respectively, which may not directly impact net income on the income statement. The non-cash investing and financing section includes non-cash activities such as issuing stock for non-cash assets, which also do not directly impact net income on the income statement.

Which of the Following Sections of the Statement of Cash