The statement of cash flows has three sections:

A Revenue, expense, profit

B Operating, investing, and financing activities

C Assets, liabilities, equity

D Income, balance, equity

✓ Correct Answer: Option B

Cash flow statement: (1) Operating - core business cash flows, (2) Investing - buying/selling long-term assets, (3) Financing - debt, equity, dividends.

💡 Why is B) the correct answer?

The correct answer to the question "The statement of cash flows has three sections:" is Option B: Operating, investing, and financing activities.

The other options — A) Revenue, expense, profit, C) Assets, liabilities, equity, D) Income, balance, equity — are incorrect for this Pre-MBA Exam Prep question. As explained above: Cash flow statement: (1) Operating - core business cash flows, (2) Investing - buying/selling long-term assets, (3) Financing - debt, equity, dividends.

📚 About This Pre-MBA Exam Prep Practice Question

This 1-level Pre-MBA Exam Prep question from the Accounting topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

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The statement of cash flows has three sections:

✓ Correct Answer: Option B

📚 About This Pre-MBA Exam Prep Practice Question

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