Asked by Deonna Hershey-Kisses on May 27, 2024
Verified
Describe both the investing activities and financing activities section of the statement of cash flows.Provide some examples of each activity.
Investing Activities
Part of a company's cash flow statement that shows the amount of money spent or generated from various investment-related activities in a specific time period.
Financing Activities
Transactions involving issuing debt, equity, and paying dividends as reflected in a company's cash flow statement, indicating the flow of cash between a company and its owners and creditors.
Statement of Cash Flows
A document that illustrates the influence of balance sheet modifications and revenue on the availability of cash and equivalents, categorized by activities related to operating, investing, and financing.
- Identify and classify transactions as either investing or financing activities within the cash flow statement.
- Explain the function and elements of the general journal and general ledger.
Verified Answer
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Odile WilshireMay 29, 2024
Final Answer :
The investing activities section of the statement of cash flows reports cash flows associated with buying and selling noncurrent assets and investments.Specific examples include buying and selling property and equipment for cash,purchasing and selling long-term investments for cash,lending cash to others,and receiving principal payments from loans made.
The financing activities section of statement of cash flows reports cash flows associated with borrowing and repaying debt,issuing and repurchasing stock,and paying dividends.
Specific examples include borrowing and repaying bank loans,issuing and repurchasing stock using cash,and paying cash dividends to stockholders.
The financing activities section of statement of cash flows reports cash flows associated with borrowing and repaying debt,issuing and repurchasing stock,and paying dividends.
Specific examples include borrowing and repaying bank loans,issuing and repurchasing stock using cash,and paying cash dividends to stockholders.
Learning Objectives
- Identify and classify transactions as either investing or financing activities within the cash flow statement.
- Explain the function and elements of the general journal and general ledger.