Final answer:
The proper order of business activities for presenting the statement of cash flows is cash flows from operating, investing, and financing activities.
Step-by-step explanation:
Presentation of the Statement of Cash Flows
- Cash flows from operating activities
- Cash flows from investing activities
- Cash flows from financing activities
The statement of cash flows is a financial statement that provides information about the cash generated and used by a company during a specific period. It is presented using the indirect or direct method. The proper order of business activities for presenting the statement of cash flows is as follows:
- Cash flows from operating activities: This section reports cash flows related to the company's core operations, including cash received from customers and cash paid to suppliers and employees.
- Cash flows from investing activities: This section reports cash flows related to the buying and selling of long-term assets, such as property, plant, and equipment.
- Cash flows from financing activities: This section reports cash flows related to capital raising and repayment activities, such as issuing new debt or equity and paying dividends.