BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Funding Activities
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Investing Activities
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Financing Activities
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Operating Activities
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Detailed explanation-1: -∴ Estimating and costing activities are not included in Cash flow.
Detailed explanation-2: -Purchase of equipment for cash is not an operating cash flow.
Detailed explanation-3: -However, it does not include interest payments or any interest or dividends received by the corporation (interest income and expense and dividends received are included in cash flow from operations).
Detailed explanation-4: -Therefore, funding activities is not he part of cash flow statement.
Detailed explanation-5: -The three categories of cash flows are operating activities, investing activities, and financing activities. Operating activities include cash activities related to net income. Investing activities include cash activities related to noncurrent assets.