Arrange the following in a correct sequence, for preparing Cash Flow Statement.
(A) Cash flows from Operating Activities
(B) Cash flows from Financing Activities
(C) Cash flows from Investing Activities
(D) Net Increase in Cash and Cash equivalents
(E) Cash and Cash Equivalents in the end
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C), (B), (D), (E)
The Cash Flow Statement shows the three activities in a fixed order and then reconciles cash:
(A) Cash flows from Operating Activities — first.
(C) Cash flows from Investing Activities — second.
(B) Cash flows from Financing Activities — third.
(D) Net Increase in Cash and Cash equivalents — the total of the three.
(E) Cash and Cash Equivalents in the end — the net increase added to the opening cash and cash equivalents.
NCERT (2026-27 edition):
|
