The three sections contained in the statement of cash flows are presented in the following order:
A) operating, investing, and financing.
B) financing, operating, and investing.
C) investing, operating, and financing.
D) financing, investing, and operating.

Question

Quizplus · Accepted Answer

The operating section is presented first as it shows the cash flows from the company's day-to-day operations, followed by the investing section which shows cash flows from the purchase and sale of long-term assets, and finally the financing section which shows cash flows from activities such as borrowing, repaying debt and dividend payments.

The Three Sections Contained in the Statement of Cash Flows