What are the three major activities incvolved in cash flow statement? And in which category would you include purchase of fixed assets and repayment of loans?

Question

Accepted Answer

The three major activities in cash flow statement are operating activities, investing activities, and financing activities. Purchase of fixed assets would fall under investing activities, while repayment of loans would fall under financing activities.

Operating activities involve cash flows from day-to-day business operations, such as sales and expenses.
Investing activities include cash flows related to the purchase and sale of long-term assets, like property, plant, and equipment.
Financing activities involve cash flows related to raising or repaying capital, such as issuing stock or paying off debt.
Purchase of fixed assets would be included in investing activities as it involves acquiring long-term assets for the business.
Repayment of loans would be included in financing activities as it involves paying off debt obligations.

What are the three major activities incvolved in cash flow statement? And in which category would you include purchase of fixed assets and repayment of loans?

Top Deloitte Audit Assistant interview questions & answers

Popular interview questions of Audit Assistant

Top HR questions asked in Deloitte Audit Assistant