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Question 19 The statement of cash flows does not include a. Cash flows from financing activities...

Question 19

The statement of cash flows does not include

a.

Cash flows from financing activities
b.

Changes in Net Assets
c.

Cash flows from investing activities
d.

Cash flows from operating activities
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Answer #1

The correct option is:

Change in Net Assets

A change in net assets such as increase in investment in plant,property and equipment is shown as an outflow in cash flow from investing activities.On the other hand a sale of such fixed assets is shown as an inflow in cash flow from investing activities.The resulting depreciation on account of such assets is also adjusted with net income in cash flow from operating activities in the indirect method of cash flow statement etc.

Hence cash flow statement consists of :

1.Cash flow from Operating Activities

2.Cash flow from Investing Activities

3.Cash flow from Financing Activities

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