Question: Which of the following is true regarding the statement of cash flows under IFRS?

1. The statement of cash flows has two major sections— operating and non-operating.
2. The statement of cash flows has two major sections— financing and investing.
3. The statement of cash flows has three major sections— operating, investing, and financing.
4. The statement of cash flows has three major sections— operating, non-operating, and financing

The cash flow statement gives information on changes in a company's Cash Equivalents and Cash throughout an accounting period. This adjustment consolidates the interests into running, finance, and investing.

To assess the liquidity and solvency of the company, associations ought to monitor and examine three distinctive sorts of cash flow: cash flow from operating operations, cash flow from investing activities, and cash flow from financing activities. The cash flow explanation of an enterprise incorporates all three.

Therefore, option (c) the statement of cash flows has three major sections— operating, investing, and financing is the correct option.

Option a) The cash flow statement under IFRS categorizes all three activities, including operating, investing, and financing.

Option b) To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow: cash flow from operating operations, cash flow from investing activities, and cash flow from financing activities. The cash flow statement of a corporation includes all three.

Option d) The main section of the cash flow statement is operating, financing, and investing activities. No other activities are to be mentioned in the cash flow statement.