Which of the following is included in the statement of cash flows? a.Cash flows from investing activities b.Total changes in stockholders' equity c.Changes in retained earnings d.Total assets

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04-03-2020
Business

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Which of the following is included in the statement of cash flows? a.Cash flows from investing activities b.Total changes in stockholders' equity c.Changes in retained earnings d.Total assets

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letmeanswer letmeanswer · Answer 1 · 2020-03-12T08:06:40+01:00

Answer: A. Cash flow from investing activities

Explanation:

When we prepare a cash flow statements the sum of following heads are ascertained:

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

The total sum of these three heads provide the net increase or decrease in cash.

Now we add the openening balance of cash to ascertain the closing cash balance which is reported to the final balance sheet of the company under the head Current Assets.

cash flow from investing activities indicates the inflow and outflow of cash of the business in sale and purchase of investments and assets.