Question

The group into which business activities are classified for financial reporting of cash flow statement are:

A Current and non-current Correct Answer Incorrect Answer
B Operating, investing and financing Correct Answer Incorrect Answer
C Asset and liabilities Correct Answer Incorrect Answer
D Profit and loss Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Cash Flow Statement should classify the cash flows into three categories: a. Operating Activities – activities related to the operations of the company, including changes in working capital b. Investing Activities – activities related to how money is used and deployed into various non-current assets c. Financing Activities – activities related to raising funds/money through owned or debt capital

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