The statement of cash flows reports on cash flows for:
A)Operating activities
B)Revenue activities
C)Expense activities
D)Planning activities
E)Equity activities

Question

Quizplus · Accepted Answer

The statement of cash flows reports on cash flows for operating activities, which include cash flows related to a company's primary business operations such as sales, purchases, and payments to suppliers and employees. It also reports cash flows from investing activities, such as the purchase and sale of fixed assets and investments, as well as cash flows from financing activities, such as stock issuances and debt repayments. None of the other choices listed (revenue activities, expense activities, planning activities, and equity activities) accurately describe the types of cash flows reported in the statement of cash flows.

The Statement of Cash Flows Reports on Cash Flows For