Question

Define and discuss the differences between operating, investing, and financing activities.

Answer 1

Solution:

Operating activities:

Net Income is taken from organizations pay proclamation, Depreciation and amortization is included in light of the fact that this costs are in realy no money surge from the exercises, , Working capital increment and decline will influence the money parity of the organization,

Investing activities:

Cash Flow from contributing action is demonstrates the total change in the organizations money position due to contributing movement. It demonstrates sum spent on new venture or offer of speculation

Financing activities:

Financing action of the income articulation indicates income from Financing Activities represents inflows and outpourings of money coming about because of obligation issuance and financing, the issuance of any new stock, profit installments, and any repurchase of existing stock.