Which relationship between items in the statement of cash flows (CF)and items in the balance sheet (BS)is not correct?
A) Cash from investing activities (CF); Non-current assets (BS).
B) Cash from financing activities (CF); Non-current liabilities and equity (BS).
C) Cash from financing activities (CF); Non-current assets (BS).
D) Cash from operating activities (CF); Current assets and liabilities (BS).

Question

Quizplus · Accepted Answer

Cash from financing activities typically involves transactions related to borrowing, issuing or repurchasing equity, and paying dividends. These transactions typically do not involve non-current assets, but rather non-current liabilities and equity. Therefore, the relationship between cash from financing activities and non-current assets in the balance sheet is not correct.

Which Relationship Between Items in the Statement of Cash Flows