The statement of cash flows reports the amount of cash flow from a firm's
A)divestiture, and acquisition activities.
B)operating, divestiture, and acquisition activities.
C)funding and disbursement activities.
D)operating, investing, and financing activities.
E)operating, funding and disbursement activities.

Question

Quizplus · Accepted Answer

The statement of cash flows reports the amount of cash flow from a firm's operating, investing, and financing activities. This helps investors and analysts understand how the company is generating and using its cash. The operating section reports cash flow from day-to-day business operations, the investing section reports cash flow from investing activities like purchasing or selling fixed assets, and the financing section reports cash flow from financing activities like issuing stock or repaying debt.

The Statement of Cash Flows Reports the Amount of Cash