Fill in the Blank QuestionFill in the blank question.The major activities of a firm shown on the statement of cash flows include operations, , and financing.
Question
Fill in the Blank Question
Fill in the blank question.
The major activities of a firm shown on the statement of cash flows include operations, ____, and financing.
Solution
The major activities of a firm shown on the statement of cash flows include operations, investing, and financing.
In the context of financial reporting, the statement of cash flows categorizes cash inflows and outflows into three main activities:
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Operating Activities: These include the cash flows from the core business operations and are essential for running the company on a day-to-day basis.
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Investing Activities: This category covers cash transactions for the purchase and sale of physical and financial investments, such as property, equipment, and securities.
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Financing Activities: These involve cash flows related to borrowing, repaying debt, issuing shares, and paying dividends.
Together, these three activities provide insight into how a company generates and spends its cash.
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