Question

A statement of cash flows prepared using the indirect method would have cash activities listed in which one of the following orders?

a) Operating activities, Investing activities, Financing activities
b) Financing activities, Investing activities, Operating activities
c) Investing activities, Operating activities, Financing activities
d) Operating activities, Financing activities, Investing activities

Answer 1

A statement of cash flows prepared using the indirect method would have cash activities listed in the order of operating activities, investing activities, financing activities.

Step-by-step explanation:

A statement of cash flows prepared using the indirect method would have cash activities listed in the following order: operating activities, investing activities, financing activities.

Operating activities include cash inflows and outflows from the company's core business operations, such as revenue and expenses. Investing activities include cash flows related to the purchase or sale of long-term assets, like property or equipment. Financing activities involve cash flows related to the company's capital structure, such as obtaining loans or issuing stock.