What are the three activities according to which a statement of cash flows is organized?
A) operating, selling, and investing
B) financing, buying, and selling
C) investing, financing, and expensing
D) operating, investing, and financing

Question

Quizplus · Accepted Answer

The statement of cash flows is organized according to the three main activities of a business: operating, investing, and financing. The operating section includes cash inflows and outflows related to the primary business activities, such as revenue and expenses. The investing section includes cash inflows and outflows related to investments in assets, such as property, plant, and equipment. The financing section includes cash inflows and outflows related to financing activities, such as issuing debt or paying dividends to shareholders.

What Are the Three Activities According to Which a Statement