Distinguish between cash flows from operating activities, investing activities and financing activities
Answers
Answered by
3
Operating activities include cash activities related to net income. For example, cash generated from the sale of goods (revenue) and cash paid for merchandise (expense) are operating activities because revenues and expenses are included in net income.
Investing activities include cash activities related to noncurrent assets. Noncurrent assets include (1) long-term investments; (2) property, plant, and equipment; and (3) the principal amount of loans made to other entities. For example, cash generated from the sale of land and cash paid for an investment in another company are included in this category. (Note that interest received from loans is included in operating activities.)
HOPE IT HELPS YOU.
PLEASE... MARK MY ANSWER AS BRAINLIEST.
Investing activities include cash activities related to noncurrent assets. Noncurrent assets include (1) long-term investments; (2) property, plant, and equipment; and (3) the principal amount of loans made to other entities. For example, cash generated from the sale of land and cash paid for an investment in another company are included in this category. (Note that interest received from loans is included in operating activities.)
HOPE IT HELPS YOU.
PLEASE... MARK MY ANSWER AS BRAINLIEST.
Similar questions
Environmental Sciences,
5 months ago
Business Studies,
11 months ago
Science,
1 year ago
Math,
1 year ago