Asked by Vritra Official on Jun 13, 2024
Verified
A cash flow statement will be divided into separate sections reporting cash flows resulting from operating activities, investing activities, financing activities and shareholder equity activities.
Financing Activities
These are transactions involving the flow of cash between a company and its owners and creditors. It includes issuing debt, repaying debt, stock sales, and stock repurchases.
Operating Activities
Activities that relate directly to the primary business operations of an organization, such as sales, provision of services, manufacturing of goods, etc.
- Execute cash flow calculations and scrutinize the financial outcomes from operational, investing, and financing endeavors.
Verified Answer
KM
Karima MorsiJun 16, 2024
Final Answer :
False
Explanation :
A cash flow statement is divided into three sections: cash flows from operating activities, investing activities, and financing activities. There is no separate section for shareholder equity activities; changes in shareholder equity are reflected in the financing activities section.
Learning Objectives
- Execute cash flow calculations and scrutinize the financial outcomes from operational, investing, and financing endeavors.