Canadian Securities Course (CSC) Level 1 Practice Exam 2025 – All-In-One Guide to Master Your Exam Prep!

The correct answer reflects the fundamental structure of the statement of cash flows, which is a financial report that summarizes the cash generated and used during a specific period. The statement is divided into three primary categories: operating activities, financing activities, and investing activities.

Operating activities include the main revenue-generating activities of a business and the cash flows associated with them, such as receipts from sales of goods and services, and payments to suppliers and employees. Financing activities refer to cash flows related to borrowing and repaying external funds or equity financing, such as issuing stocks or bonds and paying dividends. Investing activities involve cash flows from the purchase and sale of physical and financial investments, such as property, equipment, or securities.

The mention of "change in cash flow" is typically not a standalone category; instead, it is often an outcome of the activities identified in the first three categories. However, it is relevant to understand that the overall change in cash within the statement is derived from these three activity categories.

The other options do not align with recognized categories of cash flow statements in financial reporting. They either pertain to areas of business operations not specifically involved in cash transaction analysis or mix different aspects of the business that are not reflective of cash flow activities.