Question

• Compare and contrast operating, investing, and financing activities.
• Are timesheets required for QuickBooks Accountant to process payroll?
• How does a business know when to create an invoice and when to create a sales receipt?

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Answer 1

1. Cash flow statement divides activities and flow of cash in three activities i.e Operating, Investing and Financing ,

Operating activities are the activities which includes the cash flow activities relates to the operations of the Business i.e receipts from sales , purchase expenses , operating expenses , Cash flow from Operating activities shows the applictaions and utilisation of cash from operations of the Business.

Investing activities are the activites which includes the cash flow activities relates to the Investments of the Business i.e receipts and payments for purchasing of Investments eg land , building etc , payments of interest etc. Cash flow from Investing activities shows the applictaions and utilisation of cash from Investments done in the Business.

Financing activities are the activites which includes the cash flow activities relates to the financing of the Business i.e receipts and payments from issuing of shares , payments of dividends , security premium etc. Cash flow from financing activities shows the applictaions and utilisation of cash from Finance taken in the Business.

2. Yes , timesheets are the must things for processing any payroll as the employee is paid for the days worked , there are so many leaves employees were allowed ,but extra leaves taken will be accounted and salary wont be paid for excess leaves taken , so maintaing timesheets are most important and required for processing payroll.

3. In business when the sales is done , invoice is made and when the payment for the same get received , sales receipts is issued.