The Order of Presentation of Activities on the Statement of Cash

question 146

Multiple Choice

The order of presentation of activities on the statement of cash flows is

• A) operating, investing, and financing
• B) operating, financing, and investing
• C) financing, operating, and investing
• D) financing, investing, and operating

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Definitions:

Accounts Receivable Balance

The total amount of money due to a company for goods or services delivered or used but not yet paid for by customers.

Operating Activities

Activities that relate directly to the primary business operations of a company, such as selling goods and services.

Sale of Machinery

The transaction involving the disposal of machinery assets, either due to replacement, upgrading, or discontinuation of use, which can impact a company's financial statements.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents, as part of a company's financial operations.