Questions: The cash flow statement can take many formats but the most common one breaks the statement into three sections: Cash from operating activities, Cash from financing activities and Cash from investing activites

The cash flow statement can take many formats but the most common one breaks the statement into three sections: Cash from operating activities, Cash from financing activities and 
Cash from investing activites
Transcript text: The cash flow statement can take many formats but the most common one breaks the statement into three sections: Cash from operating activities, Cash from financing activities and Cash from investing activites
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Solution

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Answer

The answer is Cash from investing activities.

Explanation
Option 1: Cash in owners account

This is not a standard section in a cash flow statement. The cash flow statement focuses on the movement of cash within the business, not specifically on the owners' accounts.

Option 2: Cash from investing activities

This is a standard section in a cash flow statement. It includes cash flows related to the acquisition and disposal of long-term assets and investments. This section helps in understanding how much the company is investing in its future operations.

Option 3: Cash from depreciation

Depreciation is a non-cash expense and does not directly affect the cash flow. It is accounted for in the operating activities section as an adjustment to net income.

Option 4: Cash from closing balance

The closing balance is the result of the cash flow statement, not a section within it. It represents the ending cash balance after accounting for all cash inflows and outflows during the period.

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