Cash is recorded as an asset in the balance sheet, specifically as a current asset. It has to be shown as a current asset as it is the most liquid of assets and can immediately be exchanged for other assets or to settle a liability.

Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets?

– Activities that increase or decrease long-term assets are included in the operating activities section.

What is the first section or activity in the statement of cash flows?

cash flow from operations
The first section of the cash flow statement is cash flow from operations, which includes transactions from all operational business activities. Cash flow from investment is the second section of the cash flow statement, and is the result of investment gains and losses.

Which of the following is not a section on the cash flow statement?

The three sections of any cash flow statement are; financing decisions, investing decision and operating decision. These three parts are interconnected which affect cash inflows and cash outflows. Income-generating activity is not a section of the cash flow statement.

When an annual statement of cash flows is prepared the sum of the three major components?

Investing activitiesOperating activitiesFinancing activitiesAll of these On the statement of cash flows, the sum of the three major components (operating activities, investing activities, financing activities) adds up to the amount of cash inflow for the period. the ending cash balance.

Which of the following is not one of the 3 sections of a cash flows statement?

Which of the following is not one of the three main sections of a statement of cash flows?

1 Approved Answer Major statements under cash flows are, “investing activities, operating activities, and financing activities”. So, in this case, option (b) is correct, cash flow from selling activity is not a major section in cash flows.

What are main features of cash flow statement?

(i) Cash Flow Statement is very dynamic in character since it records the investment of cash from the beginning of the period to the end of the period. ADVERTISEMENTS: (ii) It is a periodical statement as it covers a particular period. (iii) This statement does not recognize matching principles.