Question

Select all that apply The three-step analysis to determine cash provided or used by investing activities includes: Multiple select question. identifying changes in investing-related accounts reporting the cash flow effects explaining the changes using T-accounts and reconstructed entries identifying changes in cash accounts

Answer 1

Answer:

identifying changes in investing-related accounts

reporting the cash flow effects

explaining the changes using T-accounts and reconstructed entries

Explanation:

In analysing cash flows in a business there are 3 types of cash flow: from operating activities, from investing activities, and from financing activities.

Cash flow from investing activities involves cash used for various investments over a particular period.

This can include purchase of property, equipment, acquisition of other businesses, and investment in marketable securities.

The three-step analysis to determine cash for investing activities includes:

- monitoring changes that occurs in investment related accounts

- reporting of cash flow as it relates to investment

- use of T accounts and reconstructed entries to explain changes in cash flow