Question : Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash
Flow from Financing Activities =
Option 1: Net increase in Cash and Cash equivalents
Option 2: Net Decrease in cash and cash equivalents
Option 3: Both 1 and 2
Option 4: None of the above
Answer (1)
12th Jan, 2024
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
The sum of cash flows from operating, investing, and financing activities equals the net increase (or decrease) in cash and cash equivalents. This equation reflects the overall change in cash position resulting from the company's operational, investment, and financing activities.
Hence, the correct option is 3.
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