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64. Which component of the statement of cash flow measures cash generated from revenues and costs?

64. Which component of the statement of cash flow measures cash generated from revenues and costs?

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Answer #1

Answer:

Statement of cash flow has three major components viz.

(i). Cash flow from operating activities

(ii) Cash flow from investing activities

(iii) Cash flow from financing activities

Out of these, the component which measures cash generated from revenues and costs is 'Cash flow from operating activities'.

Operating cash flow measures cash which is generated from operations (revenue and costs).

Hence:

'Cash flow from operating activities' is the component of the statement of cash flow which measures cash generated from revenues and costs.

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