Business activities that either generate or use cash are classified as operating,investing,or financing activities on the statement of cash flows.

Question

Quizplus · Accepted Answer

This statement is true. The statement of cash flows categorizes cash activities into three main categories: operating, investing, and financing activities. This helps stakeholders better understand how a company generates and uses cash in its day-to-day operations and overall financial strategy.

Business Activities That Either Generate or Use Cash Are Classified