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CFA Level 1
Financial Reporting and Analysis

Identifying Operating Activities in Cash Flow Statement

Easy Financial Statements Cash Flow Statement

In preparing a statement of cash flows, companies categorize their cash flow activities into three sections: operating, investing, and financing activities. Each section reflects different aspects of a company’s cash inflows and outflows. Understanding how to classify these flows is essential for assessing a company's liquidity and financial health.

Which of the following activities would be classified as an operating activity in the statement of cash flows?

Hint

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