Question

Which of these is not a cash flow activity category in the Statement of cash flows?...

Which of these is not a cash flow activity category in the Statement of cash flows? Question 2 options:

a) investing.

b) depreciating.

c) operating.

d) financing.

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Homework Answers

Answer #1

The correct option is depreciating

Cash flow statement is divided into 3 categories:

a.Cash flow from operating activities=Net income for the period is adjusted to depreciation expense,gain or loss on sale of fixed assets;changes in current assets and current liabilities etc to arrive at net cash flow from operating activities.

b.Cash flow from investing activities=Under this heading;sale or purchase of fixed assets such as equipment,plant and equipment etc is reported for the period concerned.

c.Cash flow from financing activities=Under this cash flow heading;issue of stock;purchase of treasury stock;payment of dividends etc is stated.

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