Explore BrainMass

Explore BrainMass

    Classifying Cash Flows

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Classify each of the following business activities as an operating, investing, or financing activity.
    1. Acquiring inventory for resale.
    2. Buying and selling stocks and bonds of other companies.
    3. Selling shares of stock to investors for cash.
    4. Selling products or services.
    5. Buying property, plant, or equipment.
    6. Acquiring and paying for other operating items.
    7. Selling property, plant, or equipment.
    8. Borrowing cash from creditors.

    © BrainMass Inc. brainmass.com March 4, 2021, 8:30 pm ad1c9bdddf
    https://brainmass.com/business/finance/classifying-cash-flows-173256

    Solution Preview

    The statement of cash flows uses three subcategories: operating, investing, and financing. Operating activities tend to involve the cash flows that directly involve the purchase sale of the company's goods and services. Investing activities involve the long-term assets that a company needs to generate the sale of goods and ...

    Solution Summary

    The general concept of categorizing /classifying cash flows is explained. Then, each cash flow is properly categorized with an explanation.

    $2.49

    ADVERTISEMENT