What are the 3 sections of cash flow?

Question

What are the 3 sections of cash flow?

Answer 1

This question is a little vague in accounting, you learn that cash flows are from:

Financing actives, Operating activities, and Investing activities.

Answer 2

3 sections -

i. Cash Provided From or Used By Operating Activities

This section of the cash flow statement reports the company's net income and then converts it from the accrual basis to the cash basis by using the changes in the balances of current asset and current liability accounts. In addition to using the changes in current assets and current liabilities, depreciation and the gains/losses on the sale of long-term assets are removed so that the income statement net income is converted from the accrual basis to cash.

ii. Cash Provided From or Used By Investing Activities

This section of the cash flow statement reports changes in the balances of long-term asset accounts. In short, investing activities involve the purchase and/or sale of long-term investments and property, plant, and equipment.

iii. Cash Provided From or Used By Financing Activities

This section of the cash flow statement reports changes in balances of the long-term liability and stockholders' equity accounts. In short, financing activities involve the issuance and/or the repurchase of a company's own bonds or stock. Dividend payments are also reported in this section.