What are the three parts of the Statement of Cash Flows?

The correct response identifies the three primary components of the Statement of Cash Flows as cash from operations, cash from investing, and cash from financing. This financial statement is crucial for understanding the cash inflows and outflows of a business over a specific period, allowing stakeholders to assess the company's liquidity and financial viability.

Cash from operations refers to the cash generated or used in the core business activities, reflecting the company's ability to earn income through its primary operations. Cash from investing includes cash transactions for the purchase and sale of physical and financial investments, indicating how much a company is investing in future growth. Cash from financing covers cash movements related to borrowing and repaying debt, issuing shares, or paying dividends, providing insights into how a company finances its operations.

This classification helps external and internal users, such as investors and management, understand how a company manages its cash, distinguishing between the different sources and uses of cash effectively. The other options do not accurately represent the components of the Statement of Cash Flows, either mixing financial statement elements or addressing unrelated categories.