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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

Question

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

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Solution

The correct answer is "Operating, Investing and Financing". These are the three sections of a statement of cash flows.

  1. Operating Activities: This section reports the cash effects of transactions that create revenues and expenses. It thus affects net income.

  2. Investing Activities: This section reports the cash flow from the acquisition and disposal of long term assets and investments.

  3. Financing Activities: This section reports the cash flow generated or spent on raising and repaying share capital and debt together with the payments of interest and dividends.

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Similar Questions

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

Select all that applyThe three classifications on the statement of cash flows are cash flows from (Select all that apply.)Multiple select question.investing activities.operating activities.financing activities.discontinued activities.business activities.

Cash inflows and outflows associated with changes in non-current liabilities and equity, not arising from profit are included in which section of the statement of cash flows?Group of answer choices

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 is a financial statement that shows ______.

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