Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 1 - Introduction to Financial Statements - Questions: 7

Answer

The three main types of business activities are operating activities, investing activities and financing activities. An example of operating activity is purchasing office supplies to continue business. An example of investing activity is purchasing equipment to continue its operations and manufacturing goods. An example of financing activity is to take a loan from bank.

Work Step by Step

Operating activities are the activities that are a part of the daily operations of a business. Investing activities are the activities that helps a business in continue operations in the future. Financing activities are the activities that help a business gain finance, apart form the daily operations.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.