Which of the following represents the correct sequence of the three business activities on the statements of cash flows?
A)Financing,Operating,Investing
B)Investing,Operating,Financing
C)Operating,Investing,Financing
D)Financing,Investing,Operating

Question

Quizplus · Accepted Answer

The correct sequence of the three business activities on the statements of cash flows is Operating, Investing, Financing. This represents the order in which cash flows are generated and expended in a typical business cycle. Operating activities refer to the cash flows from the company's core business operations, while investing activities relate to the company's investments in long-term assets such as property, plant, and equipment. Financing activities refer to cash flows from transactions with shareholders and creditors, such as issuing stocks or taking out loans. Therefore, option C represents the correct sequence of the three activities.

Which of the Following Represents the Correct Sequence of the Three