In particular, which cash flow can uncover a company's true profitability?
Operating
Investing
Financing
None of these
In particular, operating cash flow can uncover a company's true profitability
An example of cash flow from operating activity for financing company:
A company purchased machinery worth Rs 1 crore on hire purchases basis. The accountant seeks your advice in accounting for the :
(i) Payment of instalment and
(ii) Interest under operating, investing and financing activity in the preparation of the Cash Flow Statement.