The order in which following items appear in the cash flow statement

(A) Cash and cash equivalents at the end

(B) Cash and cash equivalents at the beginning

(C) Purchase of property

(D) Proceeds from Issuance of Bonds

Choose the correct answer from the options given below:

The cash flow statement follows a standard format with three main activities followed by the reconciliation of opening and closing cash balances.

Structure of Cash Flow Statement:

1. Cash Flow from Operating Activities
2. Cash Flow from Investing Activities → (C) Purchase of property appears here
3. Cash Flow from Financing Activities → (D) Proceeds from Issuance of Bonds appears here
4. Net increase/decrease in cash and cash equivalents
5. Add: (B) Cash and cash equivalents at the beginning of period
6. (A) Cash and cash equivalents at the end of period

Analysis of items:

• (C) Purchase of property = Investing Activity (outflow)
• (D) Proceeds from Issuance of Bonds = Financing Activity (inflow)
• (B) Cash and cash equivalents at the beginning = Opening balance added after calculating net change
• (A) Cash and cash equivalents at the end = Final closing balance

The format at the bottom of cash flow statement is:

Net increase/decrease in cash

Add: Cash and cash equivalents at beginning (B)

Cash and cash equivalents at end (A)

Therefore, the correct sequence is: (C), (D), (B), (A)

Correct Option: 3