Question

What does a Cash Flow Statement report?

a.

Net profit and loss

b.

Cash transactions only

c.

Cash receipts and cash payments classified by major activities

d.

Balance of assets and liabilities

Posted under IC 89 Management Accounting

Answer: (c).Cash receipts and cash payments classified by major activities Explanation:A Cash Flow Statement reports cash receipts and cash payments classified according to the firm's major activities, namely Operating Activities, Investing Activities, and Financing Activities during the period of reporting.

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Q. What does a Cash Flow Statement report?
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