Which of the following activities is NOT a category reported on the statement of cash flows?

• A. Marketing activities
• B. Investing activities
• C. Operating activities
• D. Financing activities

Answer: (A)

Verified step by step guidance

1. Understand the purpose of the statement of cash flows: It categorizes cash inflows and outflows into three main activities—Operating, Investing, and Financing—to provide insights into a company's cash management.
2. Define each category: Operating activities include cash flows from day-to-day business operations (e.g., sales revenue, expenses). Investing activities involve cash flows from the purchase or sale of long-term assets (e.g., equipment, investments). Financing activities include cash flows related to borrowing, repaying debt, or issuing equity.
3. Identify the term 'Marketing activities': Marketing activities are part of a company's operational strategy but are not a distinct category reported on the statement of cash flows. They are typically included under Operating activities as part of expenses.
4. Compare the options provided: Analyze each option to determine whether it aligns with the three categories reported on the statement of cash flows.
5. Conclude that 'Marketing activities' is NOT a category reported on the statement of cash flows, as it is a subset of Operating activities rather than a standalone category.