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6 November, 02:20

Which financial statement provides information about operating, financing, and investing activities?

a. Statement of financial position

b. Statement of cash flows

c. Statement of stockholders' equity

d. Income statement

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  1. 6 November, 02:28
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    b. Statement of cash flows

    Explanation:

    The cash flow statement includes three types of activities which are listed below:

    1. Operating activities: it involves all transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.

    In addition, the depreciation expense is added to the net income, and the loss on asset sales is added, while the gain on asset sales is deducted

    2. Investing activities: it tracks operations that include buying and selling long-term properties. The acquisition is a cash outflow while the disposal is a cash inflow

    3. Financing activities: it records activities that have an impact on long-term liability and equity balance of shareholders. Issuance of the share is a cash inflow while redemption and dividend are cash outflows.
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