Asked by Gurwinder Bhullar on Jul 04, 2024
Verified
Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.
Long-Term Borrowing
Debt obtained by a company for a period exceeding one year, typically used for financing more substantial investments or projects.
- Gain an understanding of the categorization of cash flows and the specific features of investing, financing, and operating endeavors.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
False
Explanation :
Operating activities refer to the day-to-day cash transactions involved in running a business, such as sales, expenses, and receivables/payables. Long-term borrowing and cash investments or withdrawals by the owner are considered financing and investing activities, respectively.
Learning Objectives
- Gain an understanding of the categorization of cash flows and the specific features of investing, financing, and operating endeavors.