Respuesta :
Answer:
Statement of cash flows
Explanation:
The cash flow statements refers to the statement in which the cash inflow and cash outflow is taken place.
The cash flow statement includes three kinds of activities which are listed below:
1. Operating activities: This covers all transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.
It would adjust those changes in working capital. In fact, the depreciation cost is applied to the net income, and the loss on asset sales is added while the benefit on asset sales is deducted
2. Investing activities: it records activities that include buying and selling long-term assets. The acquisition is a cash outflow whereas the selling is a cash inflow
3. Financing activities: It reports activities that have an influence on long-term liability and equity balance of shareholders. Share issue is a cash inflow whereas redemption and dividend are cash outflows.
