Cash flows are grouped in the statement of cash flows into the following major categories:
A) Operating activities, investing activities, and financing activities.
B) Cash receipts, cash disbursements, and noncash activities.
C) Direct cash flows and indirect cash flows.
D) Operating activities, investing activities, and collecting activities.

Question

Quizplus · Accepted Answer

The statement of cash flows organizes cash flows into three major categories: operating activities, investing activities, and financing activities. Operating activities include the cash effects of transactions generated by a company's primary business operations. Investing activities include cash inflows and outflows related to buying or selling long-term assets or investments. Financing activities involve changes in a company's debt, equity, or dividend payments to shareholders.

Cash Flows Are Grouped in the Statement of Cash Flows