The order of presentation of activities on the statement of cash flows is a. operating, investing, and financing b. financing, investing, and operating c. operating, financing, and investing d. financing, operating, and investing
The order of presentation of activities on the statement of cash flows is a. operating, investing, and financing b. financing, investing, and operating c. operating, financing, and investing d. financing, operating, and investing
The order of presentation of activities on the statement of cash flows is a. operating, investing, and financing b. financing, investing, and operating c. operating, financing, and investing d. financing, operating, and investing
The order of presentation of activities on the statement of cash flows is
a.
operating, investing, and financing
b.
financing, investing, and operating
c.
operating, financing, and investing
d.
financing, operating, and investing
Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).
Expert Solution
Explanation -
Cash Flow Statement -
Under Cash Flow there are three type activities involved -
1. Operating Activities - Under this activities all the company operation related activities like sales, expenses and depreciation. This statement starts with income statement then all the non-cash items needs to be add into it. Expenses will be added and Incomes will be deducted.
All the changes in operating current assets and Liabilities needs to be added and deducted.
2. Investing Activities - All the Purchase sale of assets are included under this section.
3. Financing Activities - All the issue and purchase of shares, Payment of Dividend, Issuance and repayment of loan are included in this section.
