Transactions and Activities regarding cash flow statements

Question

Accepted Answer

Transactions and activities are recorded in cash flow statements to show the inflow and outflow of cash.

Cash flow statements show the sources and uses of cash during a specific period.
Transactions that increase cash are recorded as inflows, while those that decrease cash are recorded as outflows.
Activities that affect cash flow include operating, investing, and financing activities.
Examples of operating activities include sales revenue and expenses, while investing activities include purchases of property and equipment.
Financing activities include issuing or repurchasing stock and paying dividends.
Cash flow statements help investors and analysts evaluate a company's liquidity and financial health.

Top Vivriti Capital Consultant interview questions & answers