Question

Operating activities in the cash flow statement reflect the inflow and outflow of cash from ___ assets and liabilities. Investing activities recognize the buying and selling of ___
assets.

1. a. tangible b. current c. intangible
2.a. intangible b. current c. fixed

Answer 1

Answer:

1. Current.

2. Fixed.

Explanation:

A financial statement can be defined as a written report used by financial experts or accountants to quantitatively describes the financial health of a company. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Operating activities in the cash flow statement reflect the inflow and outflow of cash from current assets and liabilities. Thus, all the net income or cash from all operational business activities of a company is recorded as operating activities. Some examples of operating activities are cash paid as an expense for merchandise, cash revenue generated from the sales of finished goods etc.

Investing activities recognize the buying and selling of fixed assets.

Generally, investing activities comprises of purchasing fixed or physical assets, investing in securities and the sale of assets or securities associated with the company.