Answered: Which statement cash of flows shows the…

Which statement cash of flows shows the inflows and outflows from sale and purchases of non current assets? A. Fiancing B. Operating C. Investing D. None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which statement cash of flows shows the inflows and outflows from sale and purchases of non current assets?

A. Fiancing

B. Operating

C. Investing

D. None of the above

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

Step 1

Introduction:

Statement of cash flows:

All cash in and out transactions are recorded in statement of cash flows.

It tells the exact cash balance of the company for the period.

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