Which set of categories does the cash flow statement cover?

• A. Operating activities
• B. Investing activities
• C. Financing activities
• D. Operating, Investing, and Financing activities

Answer: (D)

The main idea is that the cash flow statement shows how cash moves through a business across three activity areas: operating activities, investing activities, and financing activities. Operating activities reflect the cash effects of the core business operations—think receipts from customers and payments to suppliers and employees. Investing activities cover cash used for or received from long‑term assets, such as purchasing equipment or selling investments. Financing activities track cash from borrowing and repaying debt, issuing or buying back stock, and paying dividends. Because you need to account for all three types of cash movements to understand the full change in cash during the period, the complete set is operating, investing, and financing activities. The other options fall short because they mention only one area and miss the rest of the cash flows.