Which of the following sections from the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet?

Question

Quizplus · Accepted Answer

The operating section of the statement of cash flows includes activities related to the company's primary business operations, which typically affect current assets (such as accounts receivable and inventory) and current liabilities (such as accounts payable and accrued expenses). The investing section includes activities related to investments in long-term assets, while the financing section includes activities related to long-term financing, such as issuing or repurchasing stock and paying dividends. Therefore, the operating section is the best choice for activities that affect current assets and liabilities.

Which of the Following Sections from the Statement of Cash