Asked by
Autumn Eyman
on Dec 17, 2024Verified
If $40,000 was generated from operations, $9,000 was used for investing activities, and $4,000 was provided by financing activities, the cash balance would:
A) increase by $35,000.
B) decrease by $35,000.
C) increase by $40,000.
D) increase by $31,000.
Investing Activities
Financial activities related to the purchase and sale of long-term assets or investment securities, impacting a company's cash flow.
Financing Activities
Transactions involving raising capital and repaying investors, including debt, equity, and dividend payments as part of a company's cash flow.
Operations
Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders; involves management of resources, production, and distribution of goods and services.
- Itemizing and identifying the categories of operating, investing, and financing activities in the statement of cash flows.
- Calculation of cash flows from operating activities using both the direct and indirect methods.
Verified Answer
RK
Learning Objectives
- Itemizing and identifying the categories of operating, investing, and financing activities in the statement of cash flows.
- Calculation of cash flows from operating activities using both the direct and indirect methods.