Question

Briefly discuss operating and investing cash flows activities.

Briefly discuss operating and investing cash flows activities.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

So, first of all, we must know that there are 3 types of activities- operating, investing and financing.

Operating activities are those where in there is an increase or decrease in cash, due to operational activities or day to day business activities. Basically, there are 2 major points associated with this activity. First one, these activities  are related to net income and second one, these activities include transactions related to curr. assets and curr. liabilities. Examples could be Depreciation, increase in curr. liab.

Now, let's understand the investing cash flows activities. These are much easy to understand.

These are basically related to the cash purchase and cash sale of fixed asset or any non current asset.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Scenario Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities...
Scenario Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities 1. + + + 2. + + - 3. + - + 4. + - - 5. - + + 6. - + - 7. - - + 8. - - - Based on the chart above which company profile will be fit the cash flow pattern for scenario 2? A Successful, but actively relocating using financing from operations with cash from creditors and...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Investing and Financing Activities NOT affecting cash A list of items that appear on the Cash Flows Statement appear below: Using the letters (A-D), indicate in which section(s) of the statement of cash flows (or accompanying schedule) the preceding items would most likely be classified       -       A.       B.      ...
chapter 12: Reporting Cash Flows Distinguish between operating, investing, and financing activities, and describe how noncash...
chapter 12: Reporting Cash Flows Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed. Knowledge Check 04 The following transactions and events occurred during the year. Indicate how each transaction would appear on its statement of cash flows by selecting an appropriate category. Borrowed cash from bank by signing a long-term note payable. Paid cash to purchase long-term investment securities. Paid employees for salaries and wages. Paid interest on bonds payable. for...
Define and discuss the differences between operating, investing, and financing activities.
Define and discuss the differences between operating, investing, and financing activities.
1) Which of the following is a method for reporting cash flows from operating activities that...
1) Which of the following is a method for reporting cash flows from operating activities that begins with net income and reconciles to cash flows from operating​ activities? A.accrual method B.direct method C.indirect method D.cashminus−basis method 2) Under the indirect method of preparing a statement of cash​ flows, cash disbursed for the acquisition of a capital asset​ is: A.added in the financing activities section B.added in the investing activities section C.subtracted in the operating activities section D.subtracted in the investing...
Cash Flows from Investing and Financing Activities Determine the amount of cash received and paid for...
Cash Flows from Investing and Financing Activities Determine the amount of cash received and paid for financing and investing activities and the cash flows as they would appear on Rogerson’s statement of cash flows for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows. Rogerson Company’s comparative balance sheet as of December 31, 20-2 and 20-1, showed the following with regard to investing and financing activities: 20-2 20-1 Building $130,100    $0   ...
State the section(s) of the statement of cash flows prepared by the indirect method (operating activities,...
State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: Note: Only consider the cash component of each transaction. Use the minus sign to indicate amounts that are cash out flows, cash payments, decreases in cash, or any negative adjustments. If your answer is not reported in an amount box does not require an...
Name and discuss at least 3 cash flows that you would likely see in the Investing...
Name and discuss at least 3 cash flows that you would likely see in the Investing and/or Financing activities sections of your Cash Flow Statement. DO NOT use only Investing or only financing cash flows—at least one should be present in each area of cash flows for a Travel Agency
Question 19 The statement of cash flows does not include a. Cash flows from financing activities...
Question 19 The statement of cash flows does not include a. Cash flows from financing activities b. Changes in Net Assets c. Cash flows from investing activities d. Cash flows from operating activities
The statement of cash flows is divided into cash flow from operating, investment, and financing activities....
The statement of cash flows is divided into cash flow from operating, investment, and financing activities. Discuss the importance of classifying the activities correctly. How does each area impact the statement of cash flows? Posting should be 250-500 words.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT