The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows: Operating Activities: Operating Activities are day to day business transactions, for example sales purchase etc. Investing Activities: Investing Activities belong to the sale or purchase of assets or investments of a business. For example sales of fixed assets etc, purchase of investments. Financing Activities: Financing Activities includes the transactions related to raising business finds through equity or debts. For example, issuance of shares and payment of dividend to shareholders. To choose: The true statement regarding business activities.

Question

A company is involved in investing activities when these: Multiple Choice activities involve borrowing from banks and repaying bank loans. activities involve buying and selling productive resources with long lives (such as buildings, land, equipment, and tools), purchasing investments, and lending to others. activities are directly related to running the core business to earn profits. activities involve borrowing from receiving contributions from shareholders, or paying dividends to shareholders.

Answer 1

Question

Chapter 1, Problem 2MCQ

To determine

Concept Introduction:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Operating Activities: Operating Activities are day to day business transactions, for example sales purchase etc.

Investing Activities: Investing Activities belong to the sale or purchase of assets or investments of a business. For example sales of fixed assets etc, purchase of investments.

Financing Activities: Financing Activities includes the transactions related to raising business finds through equity or debts. For example, issuance of shares and payment of dividend to shareholders.

To choose:

The true statement regarding business activities.

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