In preparing the statement of cash flows, the correct order of reporting cash activities is Financing, Operating, Investing.

Question

Quizplus · Accepted Answer

The correct order of reporting cash activities in the statement of cash flows is Operating, Investing, Financing. This order reflects the usual sequence of events in a business where operating activities generate cash, which is then used for investing in assets and repaying debt (financing activities).

In Preparing the Statement of Cash Flows, the Correct Order