Asked by Dahmineek Taylor on Jun 24, 2024
Verified
For each of the following, identify whether it would be disclosed as an operating (O), financing (F), or investing (I) activity on the statement of cash flows under the indirect method.
Investing Activity
Financial actions that involve purchasing or selling long-term assets and other investments, affecting the capital structure of an organization.
Financing Activity
Transactions and events that involve raising capital and repaying investors, including issuing equity, obtaining loans, and repaying debt, as part of the cash flow statement.
Statement of Cash Flows
A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, segregating the analysis into operating, investing, and financing activities.
- Identify and classify activities as operating, investing, or financing within the statement of cash flows.
Verified Answer
Learning Objectives
- Identify and classify activities as operating, investing, or financing within the statement of cash flows.
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