Short answer question 1. What are the 3 types of business activities? Explain with examples.
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:
There are three main types of business activities: operating, investing, and financing
Explanation:
Operating :- Operating activities are the daily activities of a company involved in producing and selling its product, generating revenues, as well as general administrative and maintenance activities. Key operating activities for a company include manufacturing, sales, advertising, and marketing activities.
Investing:- Investing activities in accounting refers to the purchase and sale of long-term assets and other business investments, within a specific reporting financing A business's reported investing activities give insights into the total investment gains and losses it experienced during a defined period.
Financing :- Financing activities are transactions or business events that affect long-term liabilities and equity. In other words, financing activities are transactions with creditors or investors used to fund either company operations or expansions