In a statement of cash flows:
A) Operating activities can be reported by either the direct method or the operating method.
B) One of the three primary reporting classifications of cash flows is financing activities.
C) Investing activities can be reported by either the direct method or the indirect method.
D) Financing activities can be reported by either the direct method or the financing method.

Question

Quizplus · Accepted Answer

The three primary reporting classifications of cash flows are operating activities, investing activities, and financing activities. This is a basic concept of the statement of cash flows.

The other choices are incorrect:
A) This statement is incorrect. Operating activities can be reported by either the direct method or the indirect method. 
C) This statement is incorrect. Investing activities can only be reported by the indirect method. 
D) This statement is incorrect. Financing activities can only be reported by the indirect method.

In a Statement of Cash Flows