Question : The cash flow statement begins with the :
Option 1: Cash Flow from Investing activity
Option 2: Cash flow from Financing activity
Option 3: Cash flow from Operating activity
Option 4: None of the above
Answer (1)
16th Jan, 2024
Correct Answer: Cash flow from Operating activity
Solution : Cash Flow from Operating Activities appears first on the cash flow statement. It begins with net income or loss and then makes adjustments to or deducts from it to arrive at a total cash flow figure.
Hence the correct answer is option 3.
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