The Statement of Cash Flows Is Divided into Three Separate

question 29

Multiple Choice

The statement of cash flows is divided into three separate activities ________.

• A) profitability activities, stability activities, and investing activities
• B) stability activities, earning activities, and financing activities
• C) operating activities, capital activities, and liquidity activities
• D) spending activities, earning activities, and capital activities
• E) operating activities, investing activities, and financing activities

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Definitions:

Debit-Credit Analysis

A fundamental accounting technique that balances debits and credits in financial transactions to maintain the equation of assets = liabilities + equity.

Credit Services

Financial services that provide customers with credit facilities to purchase goods or services, including loans, credit cards, and lines of credit.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction.

IFRS

International Financial Reporting Standards, a set of accounting standards providing a global framework for how public companies prepare and disclose their financial statements.