2 The three major categories included on the statement of ca

2) The three major categories included on the statement of cash flows are B) investing, capital, and financing activities C) investing, operating, and contracting activities D) financial, operating, and internal control activities

Solution

Answer:

Option A i.e. \"Investing, Operating and Financing Activities\" is Correct.

The Three major categories in Statement of Cash Flows are:
1. Operating Activities: The Section of Operating Activities in Statement of cash Flows records the Cash flow due to Current Assest and Current Liabilities and adjustement for Non-cash item affecting Net Income such as Depreciaiton, Amortization, Change in Working Capital etc.gm

2. Investing Activities: The Investing Activities section of Statement of Cash Flows records the Cash flows due to Non-Current Assets i.e. Sale or Purchase of Fixed Assets etc.

3. Financing Activities: The Financing Activities section of Statement of Cash Flows records the Cash flow due to amount borrowed/ financed in the Business such as Issuance of Common Stock, Dividend Payment, Retirement of Bonds etc.