Question

List and discuss the four categories of cash flows used in GASB standards. Include an example...

List and discuss the four categories of cash flows used in GASB standards. Include an example of an item possibly included in each category.
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Answer #1

The four categories of the cash flow is the

operating activities

Financing activities

Investing activities

Cash activities.

Example for the above mentioned activities are

1. Operating activities.

A. Purchasing the raw materials

B. Paaymnet of electricity bill

2. Financing activities.

A. Issuing bonds .

B. Issuing debentures.

3. Investing activities.

A. Purchasing shares of subsidiaries.

B. Keeping amount in fixed deposits.

4. Cash activities.

A. Calculating net income

B. Calculating earnings.

These are all the information about the categories of the cashflows .

I hope, all the above mentioned points and examples are useful and helpful to you.

Thank you.

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