Multiple Choice
Which of the following is NOT correct about the statement of cash flows?
26
views
13. Statement of Cash Flows
Introduction to the Statement of Cash Flows
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following best describes the organization of a statement of cash flows?
A
It lists revenues and expenses in chronological order.
B
It groups cash flows by current and non-current classifications.
C
It is divided into operating, investing, and financing activities.
D
It is organized by assets, liabilities, and equity sections.
Verified step by step guidance1
Understand the purpose of the statement of cash flows: It is a financial statement that provides information about a company's cash inflows and outflows during a specific period.
Recognize the three main categories of cash flows: Operating activities, investing activities, and financing activities. These categories help classify cash transactions based on their nature.
Operating activities include cash flows related to the core business operations, such as cash received from customers and cash paid to suppliers.
Investing activities involve cash flows from the acquisition or disposal of long-term assets, such as purchasing equipment or selling investments.
Financing activities include cash flows related to borrowing, repaying debt, issuing shares, or paying dividends. These activities reflect how the company finances its operations and growth.
7:11mWatch next
Master Introduction to the Statement of Cash Flows with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Introduction to the Statement of Cash Flows practice set
Problem sets built by lead tutorsExpert video explanations