Mention any one type of business activity
Answers
Answer:
There are three main types of business activities: operating, investing, and financing. The cash flows used and created by each of these activities are listed in the cash flow statement. The cash flow statement is meant to be a reconciliation of net income on an accrual basis to cash flow.
Answer:
Types of Business activity are:-
Finance Business activity
Operating Business activity
Investing Business activity
Explanation:
Financing Business Activities
Financing Business ActivitiesThe cash flow statement's final section includes financing activities. These include initial public offerings, secondary offerings, and debt financing. The section also lists the amount of cash being paid out for dividends, share repurchases, and interest. Any business activity related to financing and fundraising efforts is included in this section of the cash flow statement.
Operating Business Activities
Operating Business ActivitiesThe first section of the cash flow statement is cash flow from operating activities. These activities include many items from the income statement and the current portion of the balance sheet. The cash flow statement adds back certain noncash items such as depreciation and amortization. Then changes in balance sheet line items, such as accounts receivable and accounts payable, are either added or subtracted based on their previous impact on net income.
Investing Business Activities
Investing Business ActivitiesInvesting activities are in the second section of the statement of cash flows. These are business activities that are capitalized over more than one year. The purchase of long-term assets is recorded as a use of cash in this section. Likewise, the sale of real estate is shown as a source of cash. The line item "capital expenditures" is considered an investing activity and can be found in this section of the cash flow statement.
HOPE IT HELPS YOU:-)