What is the proper order for the categories of the statement of cash flows?
A) Financing activities, investing activities, and operating activities
B) Operating activities, investing activities, and financing activities
C) Operating activities, financing activities, and investing activities
D) Investing activities, financing activities, and operating activities

Question

Quizplus · Accepted Answer

The proper order for the categories of the statement of cash flows is operating activities, investing activities, and financing activities. This is because operating activities involve cash inflows and outflows related to the day-to-day operations of the business, such as revenue and expenses. Investing activities involve cash inflows and outflows related to the acquisition and disposal of long-term assets, such as property, plant, and equipment. Finally, financing activities involve cash inflows and outflows related to the company's financing, such as issuing or repurchasing stock, issuing or retiring debt, and paying dividends.

What Is the Proper Order for the Categories of the Statement