Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

The statement of cash flows clarifies cash flows according to which of the following?

Options:

Operating and non-operating flows

Investing and non-operating flows

Inflows and outflows

Operating, investing and financing activities

Correct Answer:

Operating, investing and financing activities

Explanation:

The correct answer is option 4- Operating, investing and financing activities.

A cash flow statement provides information about the historical changes in cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities. It requires that an enterprise should prepare a cash flow statement and should present it for each accounting period for which financial statements are presented.