The cash flow statement is divided into three categories relating to cash flows from operating,investing,and:
A) management planning activities
B) financing activities
C) strategic positioning activities
D) marketing activities

Question

Quizplus · Accepted Answer

The cash flow statement is divided into three categories: operating activities, investing activities, and financing activities. Operating activities describe the cash inflows and outflows related to the company's core business operations. Investing activities relate to the cash inflows and outflows associated with the purchase or sale of long-term assets, such as property, plant, and equipment. Financing activities detail the cash inflows and outflows related to the company's borrowing, issuance of stock, and payment of dividends. Option A, management planning activities, is not a recognized category of cash flows on a cash flow statement. Option C, strategic positioning activities, and option D, marketing activities, are not recognized categories on a cash flow statement either.

The Cash Flow Statement Is Divided into Three Categories Relating