Accounting · Cash Flow Statement
Consider the following statements regarding the classification of cash flows: Statement 1: Operating activities in a cash flow statement represent the principal revenue-producing activities of the enterprise, including cash receipts from sales and payments for inventory and wages. Statement 2: Cash transactions involving the acquisition, disposal, or sale of long-term assets and property are categorized under operating activities. Which of the options below is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement 1 is false, but Statement 2 is true.
- 2Statement 1 is true, but Statement 2 is false.✓
- 3Both statements are false.
- 4Both statements are true.
Correct answer
Statement 1 is true, but Statement 2 is false.
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