The classifications used to categorize cash inflows and outflows on the statement of cash flows includesoperating, financing, investing activities. Hence, it is a false statement,
On the statement of cash flows, financing activities are where stockholder and creditor cash inflows and outflows are categorised.
Offering a budget for business activities, making purchases, or making investments is known as financing. Financial institutions, including banks, are in the business of providing capital to businesses, customers, and traders to enable them to realise their aspirations. The study and field of money, money, and capital assets is known as finance. It is closely related to economics, which is the study of the creation, transfer, and use of money, assets, goods, and services, albeit it is not the same thing.
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