Which classification of the cash flow arising from the proceeds from an earthquake disaster settlement would be most appropriate? Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Does not appear in the statement of cash flows

Which classification of the cash flow arising from the proceeds from an earthquake disaster settlement would be most appropriate? Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Does not appear in the statement of cash flows

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which classification of the cash flow arising from the proceeds from an earthquake disaster settlement would be most appropriate?

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Does not appear in the statement of cash flows

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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