Accounting: Tools for Business Decision Making, 5th Edition

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

Chapter 12 - Statement of Cash Flows - Questions: 3


The Three activities reported by the statement of cash flows: a) Operating activities b) Investing activities c) Financing activities

Work Step by Step

a) Indicates the cash effects of transactions that create revenues and expenses. These are the cash generated through net income. b)Specifies the acquiring and disposing of investments and property, plant and equipment. It also specify about the lending money and collecting the loans. c) Cash obtained from issuing debt and repaying the amounts borrowed. This also includes obtaining cash from stockholders, repurchasing shares and paying dividends.
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