Cash flows resulting from a company's normal earnings process are reported on the statement of cash flows in the:

Question

Quizplus · Accepted Answer

Cash flows from a company's normal earnings process, such as cash received from customers and payment to suppliers, are classified as operating activities and reported in the operating activities section of the statement of cash flows. Financing activities involve raising and repaying capital, while investing activities involve buying and selling long-term assets such as property, plant, and equipment. Noncash investing and financing activities involve transactions that do not involve actual cash flows, such as issuance of stock or bonds in exchange for assets.

Cash Flows Resulting from a Company's Normal Earnings Process Are