Question

The statement of cash flows clarifies cash flows according to ______.

Options

• Operating and non-operating flows

• Investing and non-operating flows

• Inflows and outflows

• Operating, investing, and financing activities

Answer 1

The statement of cash flows clarifies cash flows according to operating, investing, and financing activities.

Explanation:

The statement of cash flows shows how cash is generated and used during a given accounting period by separating cash flows into operating, investing, and financing activities.