Which of the following describes the operating activities section of a cash flow statement?
Posted: Sat Aug 07, 2021 6:51 am
A) It provides information about how operations have been financed.
B) It provides information pertaining to dividend payments to stockholders.
C) It provides information with respect to a company's ability to generate cash flows that are
directly related to earning income.
D) It provides the net increase or decrease in cash during the period.
Answer: C
Explanation: Cash flows from operating activities are cash flows directly related to earning
income.
B) It provides information pertaining to dividend payments to stockholders.
C) It provides information with respect to a company's ability to generate cash flows that are
directly related to earning income.
D) It provides the net increase or decrease in cash during the period.
Answer: C
Explanation: Cash flows from operating activities are cash flows directly related to earning
income.