The statement of cash flows clarifies cash flows according to which of the following? |
Operating and non-operating flows Investing and non-operating flows Inflows and outflows Operating, investing and financing activities |
Operating, investing and financing activities |
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. |