Final answer:
The Cash Flow Statement is indeed organized into operating, investing, and financing sections, which is true. This financial report tracks cash transactions related to business operations, investments in long-term assets, and changes in equity and debt.
Step-by-step explanation:
The statement that the Cash Flow Statement is organized in terms of the organization's operating, investing, and financing activities is True. The Cash Flow Statement is an essential financial report that provides a summary of the cash inflows and outflows for a company over a specific period. The top portion typically deals with cash flows related to operating activities, which include transactions from the core business operations.
The middle portion concerns cash flows from investing activities, which includes the flow of cash associated with the acquisition or disposal of long-term assets and other investments not related to cash equivalents. The bottom portion reports on financing activities, which involve changes in equity and borrowings.
For example, the bottom portion of the Cash Flow Statement might detail the inflow and outflow of monies from international investments such as securities like stocks and bonds, or real estate abroad, in addition to international borrowing and lending.
This mirrors the financial movements illustrated in the bottom lines of certain economic figures, where investments made abroad initiate a fund flow from the home country to the rest of the world, and investment income from foreign investments flows back. Similarly, the statement would show investments into the home country from abroad and the corresponding investment income flowing between countries.