Which of the statements is NOT TRUE about the Statement of Cash Flows? a) Collection of receivables is an operating activity b) Payment of suppliers is a financing activity c) Issuing new shares is a financing activity d) Purchase of Machinery & Equipment is an investing activity
Which of the statements is NOT TRUE about the Statement of Cash Flows?
a) Collection of receivables is an operating activity
b) Payment of suppliers is a financing activity
c) Issuing new shares is a financing activity
d) Purchase of Machinery & Equipment is an investing activity
A statement of cash flows or a cash flow statement is a financial statement that is to be prepared and maintained by a corporation in order to record and report the financial information and data. The statement of cash flows reports and record the cash inflows and outflows of the corporation.
The summarization of the cash and cash equivalents entering into the corporation and going out of the corporation is done in the cash flow statement. The cash flow statement divides the cash inflows and outflows into operating, investing, and financing activities.
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