The cash flow statement reports inflows and outflows of cash under which three headings?
A) Operating activities, investing activities and expense activities
B) Operating activities, investing activities and equity activities
C) Operating activities, investing activities and finance activities
D) Operating activities, investing activities and debt activities

Question

Quizplus · Accepted Answer

The cash flow statement reports inflows and outflows of cash under three main headings: operating activities, investing activities, and financing activities. Operating activities include cash inflows and outflows related to daily business operations. Investing activities include cash inflows and outflows related to the purchase and sale of long-term assets such as property, plant, and equipment. Financing activities include cash inflows and outflows related to the financing of the company such as raising capital through the issuance of stock or borrowing funds through loans or bonds.

The Cash Flow Statement Reports Inflows and Outflows of Cash