- Cash flow statement is one of the most important parts of any organisation’s Financial Statements. This cash flow statement shows the flow of cash in (sources) and cash out (uses) of the organisation. This statement is prepared for a given period and each transaction is classified into three activities namely, Operating, Investing or Financing. To determine:- Her, in the problem provided to us, we are required to ascertain the classification of each transaction given to us into three activities namely, Operating, Investing or Financing.

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Chapter 16, Problem 1QS

To determine

Introduction:-

Cash flow statement is one of the most important parts of any organisation’s Financial Statements. This cash flow statement shows the flow of cash in (sources) and cash out (uses) of the organisation. This statement is prepared for a given period and each transaction is classified into three activities namely, Operating, Investing or Financing.

To determine:-

Her, in the problem provided to us, we are required to ascertain the classification of each transaction given to us into three activities namely, Operating, Investing or Financing.

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