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3 November, 15:50

The order of presentation of activities on the statement of cash flows is

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  1. 3 November, 16:56
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    Operating activities

    Investing activities

    Financing activities

    Explanation:

    In a cash flow statement, the activities of the organization are usually recognized in 3 parts namely; Operating activities, investing activities and financing activities.

    The operating activities include elements such as net profit, non cash items, change in current assets and liabilities.

    The investing activities include cash flows from the disposal and purchase of assets etc

    The financing activities includes cash flows from the disposal and sale of shares etc.

    The net cash flows from these activities is the netted off the cash balance at the beginning of the period to get the cash balance at the end of the period.

    Hence the order of presentation of activities on the statement of cash flows is

    Operating activities

    Investing activities

    Financing activities
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