Question

Match the section of the Cash Flow Statement with the activity it represents. Cash Flow from Operating Activities [Choose] [C
Determine how each activity is categorized and whether it is an inflow or outflow of cash. The sale of bonds (Select] [Select
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Answer #1

Correct matching is as follows:

Cash flow from operating activities = Day to day business operations

Cash flow from Investing Activities = Purchase and sale of long term assets

Cash from from Financing Activities = Activities to raise cash and pay back Creditors and pay dividend to Stockholders

Sale of bonds = Financing = Inflow

Purchase of building – Investing – Outflow

Cash paid for expenses – Operating – Outflow

Sale of Equipment – Investing – Inflow

Payment of Dividend – Financing – Outflow

Selling products to customers – Operating – Inflows

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