The last section of the cash flow statement refers to which of the following?

The last section of the cash flow statement refers to which of the following?

• A. Operating activities
• B. Investing activities
• C. Financing activities
• D. Administrative expenses

Answer: (C)

The last section of the cash flow statement pertains to financing activities. This section primarily reflects the cash movements associated with borrowing and repaying debt, as well as transactions involving equity, such as issuing shares or paying dividends. It provides insights into how a company finances its operations and growth through external funding sources. In financing activities, you can expect to see cash inflows from issuing stock or obtaining loans and cash outflows related to repaying debt or buying back shares. This section is crucial for stakeholders to understand how a company manages its capital structure and financing strategies. The other categories—operating activities and investing activities—are distinct and serve different purposes in the cash flow statement. Operating activities show the cash generated or used in the core business operations, while investing activities reflect cash flows related to the acquisition and disposal of long-term assets. Administrative expenses do not belong to the cash flow statement but are typically represented in the income statement as part of operating expenses.

The last section of the cash flow statement pertains to financing activities. This section primarily reflects the cash movements associated with borrowing and repaying debt, as well as transactions involving equity, such as issuing shares or paying dividends. It provides insights into how a company finances its operations and growth through external funding sources.

In financing activities, you can expect to see cash inflows from issuing stock or obtaining loans and cash outflows related to repaying debt or buying back shares. This section is crucial for stakeholders to understand how a company manages its capital structure and financing strategies.

The other categories—operating activities and investing activities—are distinct and serve different purposes in the cash flow statement. Operating activities show the cash generated or used in the core business operations, while investing activities reflect cash flows related to the acquisition and disposal of long-term assets. Administrative expenses do not belong to the cash flow statement but are typically represented in the income statement as part of operating expenses.