The three categories of a firm's statement of cash flows are ________.
A) cash flow from operating activities, cash flow from investment activities, and cash flow from noncash activities
B) cash flow from operating activities, cash flow from noncash activities, and cash flow from financing activities
C) cash flow from equity activities, cash flow from investment activities, and cash flow from financing activities
D) cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities

Question

Quizplus · Accepted Answer

The three categories of a firm's statement of cash flows are cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities. Choice A is incorrect because there is no separate category for noncash activities, they are accounted for within the three main categories. Choice B is incorrect because there is no separate category for noncash activities, and equity activities are not a separate category in the statement of cash flows. Choice C is incorrect because equity activities are not a separate category in the statement of cash flows, and cash flow from noncash activities is not a separate category.

The Three Categories of a Firm's Statement of Cash Flows