Which of the following activities are shown in the cash flow statement? (2024)

Which of the following activities are shown in the cash flow statement?

The cash flows generated from the operating, investing, and financing activities, which are the three main business activities, are reported on the cash flow statement.

Which of the following activities would be included on the statement of cash flows?

This financial statement complements the balance sheet and the income statement. The main components of the CFS are cash from three areas: Operating activities, investing activities, and financing activities. The two methods of calculating cash flow are the direct method and the indirect method.

Which of the following are types of activities shown on a statement of cash flows?

The cash flow statement is broken down into three categories: Operating activities, investment activities, and financing activities.

Which of the following activities reported in the statement of cash flows?

Answer and Explanation: The correct answer is option C. operating, investing, and financing.

Which of the following is not shown in a cash flow statement?

In general, the term 'cash flow' refers to the flow of cash in and out of the business. They are classified into three types of activities depending on the nature of the transactions. ∴ Estimating and costing activities are not included in Cash flow.

Which of the following statement is correct in case of cash flow statement?

Answer and Explanation: Correct statement: c) In the statement of cash flows, a decrease in inventories is reported as a source of cash. A decrease in inventories represents an inflow of cash.

Which of the following is true about a statement of cash flow?

Answer and Explanation: The answer is Option D. A cash flow statement is prepared for a single financial year. This financial statement only records the current year's cash activities related to the operating, investing, and financing and covers the same time span of the income statement.

Which of the following are sections appearing on the statement of cash flows?

The Statement of Cash Flows comprises of the Operating, Investing, and Financing sections.

What does the statement of cash flows present?

Since cash flows are vital to a company's financial health, the statement of cash flows provides useful information to management, investors, creditors, and other interested parties. The statement of cash flows presents the effects on cash of all significant operating, investing, and financing activities.

What is an example of a cash flow?

What is a cash flow example? Examples of cash flow include: receiving payments from customers for goods or services, paying employees' wages, investing in new equipment or property, taking out a loan, and receiving dividends from investments.

What are operating activities in cash flow?

The operating cash flows focus on cash inflows and outflows associated with the company's main operation activities. These activities include paying salaries, selling and buying inventory, and providing services. While reporting OCF, all investments and financial transactions are excluded and reported separately.

Which activities report cash flows from the statement of cash flows quizlet?

The Statement of Cash Flows Reports cash inflows and outflows in three broad categories: 1) Operating Activities, 2) Investing Activities, and 3) Financing activities. Together, these three cash flow categories explain the change in cash from the beginning balance to the ending balance on the balance sheet.

What are the three activities the cash flow statement reports amounts according to?

The three sections of the cash flow statement are: operating activities, investing activities and financing activities.

Which of the following activities reported in the statement of cash flows is not a financing activity?

Answer and Explanation: B. Paying interest on a long-term note payable is not reported as a financing activity in the statement of cash flows. The statement of cash flows shows the sources and uses of cash and reconciles the cash balance at the beginning of the period with the cash balance at the end of the period.

Which of the following is not part of the cash flow statement operating activities?

Cash flow from operating activities does not include long-term capital expenditures or investment revenue and expense.

Which of the following is shown on a statement of cash flows quizlet?

The statement of cash flows presents three key sections: "operating activities", "financing activities" and "adjustments in working capital accounts activities".

Which of the following cash flows appear in a statement of cash flows?

The answer is D. Cash flows from operating, investing, and financing activities.

What is on the statement of cash flows the cash flows from financing?

Cash flow from financing activities is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.

Does the statement of cash flow always balance?

The ending balance of a cash-flow statement will always equal the cash amount shown on the company's balance sheet. Cash flow is, by definition, the change in a company's cash from one period to the next. Therefore, the cash-flow statement must always balance with the cash account from the balance sheet.

How to prepare cash flow?

Why is the cash flow statement important?

The cash flow statement is a solid measure of a company's strength, profitability, and future outlook of a company. The importance of the cash flow statement is that it measures the cash inflows or cash outflows during the given period of time. This knowledge informs the company's short- and long-term planning.

How to interpret a cash flow statement?

If the inflow is higher than the outflow, the company is having positive cash flow. A negative cash flow situation arises when cash outflow exceeds the inflow. Business investments with a good long term cash flow prospects often generate poor cash flow in the short term (or the early years).

How to check if the cash flow statement is correct?

What are the three types of cash flow statements?

The three categories of cash flows are operating activities, investing activities, and financing activities. Operating activities include cash activities related to net income. Investing activities include cash activities related to noncurrent assets.

Which of the following are the objectives of the cash flow statement?

Objectives Of Cash Flow Statement:

To provide information about cash inflows and outflows from operating, investing and financing activities. To determine net changes in cash and cash equivalents.