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 - Page 27: 7


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.
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