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Discussion

A cash flow statement is divided into operating, investing and

  • A.financing activities
  • B.administrative activities
  • C.taxation activities
  • D.extraordinary activities

Answer: A

Operating covers the trading cycle, investing the purchase and sale of long-term assets, and financing the raising and repayment of debt and equity. Separating them shows whether the firm's cash is coming from its business or from borrowing.

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