A statement of cash flows:
A)has three main sections: net cash flow from operating,investing,and financing activities.
B)may be computed directly or indirectly.
C)is a statement used to better understand the financing and investing activities.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the given statements are correct. A statement of cash flows includes three main sections that show the net cash flow from operating, investing, and financing activities. It can be computed directly or indirectly, depending on the available information. The purpose of the statement is to provide relevant information about the company's sources and uses of cash during a given period, and to help users better understand its financing and investing activities.

A Statement of Cash Flows