Statement 1: Financing Activities include the cash flows that arise out of the purchase and sale of long-term assets such as plant and equipment. It includes purchases of physical assets, investments in securities, or the sale of securities or assets.

Statement 2: The cash flow statement includes only inflows and outflows of cash and cash equivalents; it excludes transactions that do not directly affect cash receipts and payments.

Answer:

Statement 1 True, Statement 2 is False

Both Statements are True

Statement 1 False, Statement 2 is True

Both Statements are False