Operating activities are the types of activities the company performs to generate profits . What are investing activities? Investing activities include the purchase or sale of long-lived assets used in operating the business, or the purchase or sale of investment securities.
What are operating activities accounting quizlet?
Examples of operating activities are cash receipts from sales of goods and services, cash payments to suppliers, cash payments to employees, and expenses . 1. Depreciation on machinery is an expense and is reduced from revenue to determine net income.
What is an investing activity quizlet?
Investing activities. Cash flow activities that include (1) purchasing and disposing of investments and productive long-lived assets using cash , and (2) lending money and collecting the loans.
Are operating activities assets?
Operating activities include cash activities related to net income . Investing activities include cash activities related to noncurrent assets. Financing activities include cash activities related to noncurrent liabilities and owners’ equity.
What are operating activities?
Operating activities are the daily activities of a company involved in producing and selling its product, generating revenues , as well as general administrative and maintenance activities. Key operating activities for a company include manufacturing, sales, advertising, and marketing activities.
What are examples of investing activities?
- Purchase of property plant, and equipment (PP&E), also known as capital expenditures.
- Proceeds from the sale of PP&E.
- Acquisitions of other businesses or companies.
- Proceeds from the sale of other businesses (divestitures)
- Purchases of marketable securities (i.e., stocks, bonds, etc.)
What are examples of cash flows from operating activities?
- Salaries paid out to employees.
- Cash paid to vendors and suppliers.
- Cash collected from customers.
- Interest income and dividends received.
- Income tax paid and interest paid.
Which activities are cash inflows from operating activities quizlet?
What are some common cash inflows from operating activities? Sales of goods or services and receipt of interest and dividends . What are some common cash inflows from investing activities? Sale of investments, sale of property, plant, and equipment or intangibles, and collection of notes receivable.
Which of the following is an example of an investing activity quizlet?
Collection of notes receivable, sale of property, and purchase of equipment are examples of investing activities. Issuance of bonds payable is an example of a financing activity. Receipt of interest and dividends are classified under the operating activities section of the statement of cash flows.
What are financing activities quizlet?
The primary types of financing activities are borrowing money, issuing shares of stock, and paying dividends .
What kind of activity is issuance of common stock for cash?
In the cash flow statement, financing activities refer to the flow of cash between a business and its owners and creditors. It focuses on how the business raises capital and pays back its investors. The activities include issuing and selling stock, paying cash dividends and adding loans.
What type of activity is sale of common stock?
It would appear as financing activity because sale of common stock impacts owners’ equity. It would appear as investing activity because purchase of equipment impacts noncurrent assets. It would appear as operating activity because sales activity impacts net income as revenue.
Which of the following financial statements shows the major types of business activities that caused a company’s cash to increase or decrease during the accounting period?
Knowledge Check 01The statement of cash flows shows the major types of business activity that caused a company’s cash to increase or decrease during the accounting period.
Is Paying accounts payable an operating activity?
Accounts payable fall under the “ operating activities ” section of the statement.
What are non operating activities?
Non-operating activities are one-time events that may affect revenues, expenses or cash flow but fall outside of the company’s routine, core business . Operating activities include: Setting a strategy. Organizing work. Manufacturing (or sourcing) products and services.
What is an investing activity?
Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets . ... However, negative cash flow from investing activities might be due to significant amounts of cash being invested in the long-term health of the company, such as research and development.
