The order in which following items appear in the cash flow statement:

(A) Cash and cash equivalents at the end

(B) Cash and cash equivalents at the beginning

(C) Purchase of property

(D) Proceeds from Issuance of Bonds

Choose the correct answer from the options given below:

(C), (D), (B), (A)

The correct answer is option 3- (C), (D), (B), (A).

(C) Purchase of property- It is an investing activity so it is shown first.

(D) Proceeds from Issuance of Bonds- It is a financing activity so it is shown at second no.

(B) Cash and cash equivalents at the beginning- These are shown at 3rd no.

(A) Cash and cash equivalents at the end- At last, Cash and cash equivalents at the end is shown.

This is the correct sequence of preparing cash flow statement-
(I) Cash flows from operating activities
(II) Cash flows from investing activities
(III) Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents (I+II+III)
+ Cash and cash equivalents at the beginning
= Cash and cash equivalents at the end.