Arrange the following in correct sequence of appearance in a cash flow statement.
(A) Cash and cash equivalents at the end
(B) Cash flows from operating activities
(C) Cash flows from investing activities
(D) Cash flows from financing activities
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is option 4- (B), (C), (D), (A).
(B) Cash flows from operating activities
(C) Cash flows from investing activities
(D) Cash flows from financing activities
(A) Cash and cash equivalents at the end
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+I+III)
+ Cash and cash equivalents at the beginning
= Cash and cash equivalents at the end.