What should be included in the statement of cash flows?

The statement of cash flows is a crucial financial statement that summarizes the cash inflows and outflows of an entity over a specific period. The key components of the statement are categorized into three main sections: operating activities, investing activities, and financing activities.

Including cash flows from these three activities provides a comprehensive view of how cash is generated and utilized in a business. Operating activities cover the primary revenue-generating activities, investing activities deal with the purchases and sales of long-term assets, and financing activities reflect the inflow and outflow of cash from transactions with the company’s owners and creditors.

This structure is fundamental in helping users assess the entity's ability to generate cash and meet its obligations. Therefore, the selection that mentions cash flows from operating, investing, and financing activities accurately captures what should be included in the statement of cash flows.

Cash inflows alone from operating activities, investments, or net income figures do not represent the full picture of cash management and performance, which is why those choices do not align with the requirements of a complete statement of cash flows.