The types of business activities measured by the statement of cash flows are:

Question

Quizplus · Accepted Answer

The statement of cash flows is divided into three main categories: operating activities, investing activities, and financing activities. Operating activities include cash flows from the primary business activities, such as sales of goods or services, payment of expenses, and receipt of income. Investing activities involve the purchase or sale of long-term assets, such as property, plant, and equipment or investments. Financing activities include cash flows related to raising or repaying capital, such as issuing or buying back stock, or borrowing or repaying loans. Therefore, choice B regarding operating activities, investing activities, and financing activities is the correct answer. The other options, such as A, C, and D, do not accurately reflect the types of business activities measured by the statement of cash flows.

The Types of Business Activities Measured by the Statement of Cash