Which of the following sections of the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet? (Assume the indirect method is used.)

Question

Quizplus · Accepted Answer

The operating section of the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet, such as changes in accounts receivable, accounts payable, and inventory. The investing section includes activities related to the acquisition and sale of long-term assets, and the financing section includes activities related to the issuance and repayment of debt and equity. The non-cash investing and financing section includes items such as the conversion of debt to equity or the acquisition of assets through the issuance of stock.

Which of the Following Sections of the Statement of Cash