The statement of cash flows is divided into three separate activities - ________.
A) profitability, stability, and investing
B) stability, earning, and financing
C) operating, capital, and liquidity
D) spending, earning, and capital
E) operating, investing, and financing

Question

Quizplus · Accepted Answer

The statement of cash flows is divided into three separate activities which are operating, investing, and financing. Operating activities include cash inflows and outflows from primary business operations, investing activities include cash inflows and outflows from the purchase and sale of long-term assets, and financing activities include cash inflows and outflows related to funding the business, such as issuing or repaying debt or issuing or buying back stock.

The Statement of Cash Flows Is Divided into Three Separate