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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Briefly describe the three types of activities a company reports in its statement of cash flows.

To determine

Explain types of activities recorded in the cash flow statement.

Explanation

Statement of cash flows: Statement of cash flow reports all the cash transactions which are responsible for inflow and outflow of cash. The results of these transactions are reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Types of activities reported in the cash flow statement:

  • Operating activities: Operating activities include cash inflows and outflows from business operations...

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