Which sections are included in a cash flow statement?

A cash flow statement is a financial document that provides detailed insights into how cash flows in and out of a business over a specific period of time. The correct choice highlights the main sections of this statement, which are operating activities, investing activities, and financing activities.

Operating activities encompass the cash flows generated from the core business operations, including the cash received from sales and the cash paid for day-to-day expenses. This section typically reflects the primary revenue-generating activities of the business.

Investing activities represent cash transactions for the purchase and sale of physical and financial investments—essentially focusing on how a company invests in its future growth. This might include cash spent on acquiring fixed assets or cash received from selling investments.

Financing activities include cash flows related to obtaining resources from owners and creditors. This section illustrates how a company funds its operations through debt or equity, such as issuing shares, taking loans, or paying dividends.

This structure allows stakeholders to assess the company’s liquidity, financial flexibility, and overall cash health. While the other choices mention important financial concepts and components, they do not accurately represent the sections that constitute a cash flow statement.