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2 years ago

Indicate to which business activity, operating activity, investing activity , or financing activity, each item relates.

Business

1 answer:

zaharov [31]2 years ago

5 0

The Indication of Business Activities are as follows:

Item Description of Item Business Activity

a. Cash received from customers. Operating Activity

b. Cash paid to stockholders (dividends). Financing Activity

c. Cash received from issuing new common stock. Financing Activity

d. Cash paid to suppliers. Operating Activity

e. Cash paid to purchase a new office building. Investing Activity

Cash flows (outflows and inflows) from operating activities (OA) are generated from or spent on a company's regular or normal business activities or operations.

Cash flows (outflows and inflows) from investing activities (IA) are spent on or received from a company's investments, which yield returns in the future.

Cash flows (outflows and inflows) from financing activities (FA) are generated from or spent on debt, equity, and dividends payments to stockholders.

Thus, the above three activities are the main business activities of an entity.

Read more about operating, investing, and financing activities at brainly.com/question/16179828

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