Which of the following is normally shown first on the statem

Which of the following is normally shown first on the statement of cash flows?

A) Cash flow from financing activities

B) Cash flow from operating activities

C) Cash flow from investing activities

D) Noncash transactions

Solution

The correct option is B) Cash flow from operating activities

In the cash flow statement cash flow from operating activities is followed by cash flow from investing activities followed by cash flow from financing activities to calculate the net change in cash balances.