The cash flow statement reports cash flows under which categories?a.Operating, investing, and financing activitiesb.Revenue, expenses, and dividendsc.Assets, liabilities, and equityd.Cash inflows and outflows
Question
The cash flow statement reports cash flows under which categories?a.Operating, investing, and financing activitiesb.Revenue, expenses, and dividendsc.Assets, liabilities, and equityd.Cash inflows and outflows
Solution
The cash flow statement reports cash flows under the categories of Operating, investing, and financing activities. So, the correct answer is a. Operating, investing, and financing activities.
Here's a brief explanation of each category:
-
Operating Activities: This section reports cash flows from the principal revenue generation activities such as receipts from sales of goods and services and payments to suppliers for goods and services.
-
Investing Activities: This section reports cash flows from buying and selling property, plant and equipment, or securities.
-
Financing Activities: This section reports cash flows from issuing or repaying capital and borrowing, specifically receiving cash from creditors and repaying the amounts borrowed and receiving cash from issuing shares and paying dividends.
Similar Questions
The statement of cash flows is a financial statement that shows ______.
The statement of cash flows is:Multiple ChoiceA financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.Another name for the statement of financial position.A financial statement that reports the cash receipts (inflows) and cash payments (outflows) for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date.A financial statement that presents information about changes in equity during a period.
The statement of cash flows separates cash inflows and outflows into the following classifications.Multiple choice question.Operations, Investments and FinancialGross Profit, Operating Income and Net IncomeCash Collected, Cash Disbursed and Change in CashOperating, Investing and Financing
The Statement of cash flows helps management, investors, creditors and other interested parties evaluate the following about the entity (choose all that apply):Group of answer choicesCash investing and financing transactions for the periodExplains the difference between profit and net cash provided (used) by operating activitiesAbility to pay share dividends and meet obligationsAbility to generate future cash flows
The Statement of Cash Flows:Multiple Choiceis an optional financial statement.shows the change in the fair value of the company's common stock during the period.shows how cash changed during the period.shows the dividends that will be paid in the future.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.