The three major categories included on the statement of cash flows are ________.
A) investing, operating, and financing activities
B) investing, capital, and financing activities
C) investing, operating, and contracting activities
D) financial, operating, and internal control activities

Question

Quizplus · Accepted Answer

The three major categories included on the statement of cash flows are investing, operating, and financing activities. These categories represent the major sources and uses of cash for a company and provide insight into its overall financial health. Investing activities refer to the buying and selling of long-term assets, such as property or equipment. Operating activities relate to the day-to-day operations of the business, including revenues and expenses. Financing activities include activities related to debt and equity financing, such as issuing and repaying loans or issuing and buying back stock.

The Three Major Categories Included on the Statement of Cash