Asked by Yahya Jabado on Apr 27, 2024
Verified
State the three cash flow classifications that are reported within a statement of cash flows and describe the primary activities included in each.
Cash Flow Classifications
The categorization of cash flows into operating, investing, and financing activities for the purpose of financial reporting and analysis.
- Assess the repercussions of specific transactions on the statement of cash flows.
Verified Answer
MC
Mario CardenasApr 27, 2024
Final Answer :
The cash flow statement classifications include operating,investing,and financing activities.The operating classification reports those cash flows related to an entity's everyday profit seeking activities.The investing classification reports those cash flows related to acquisition and disposition of investments as well
as the acquisition and disposition of long-term assets such as property,plant,and equipment and intangible assets.The financing classification reports those cash flows related to issuance and retirement of debt and equity,as well
as payment of dividends to stockholders.
as the acquisition and disposition of long-term assets such as property,plant,and equipment and intangible assets.The financing classification reports those cash flows related to issuance and retirement of debt and equity,as well
as payment of dividends to stockholders.
Learning Objectives
- Assess the repercussions of specific transactions on the statement of cash flows.
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