Asked by Yujing Huang on Jun 22, 2024

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Describe the three types of activities reported on the statement of cash flows.

Statement of Cash Flows

A financial report that shows how changes in balance sheet and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Activities Reported

A summary or record of actions, events, or operations that have taken place within a specific period.

  • Describe the activities presented in the statement of cash flows and understand its importance.
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MG
Megan GasselJun 25, 2024
Final Answer :
The three types of activities reported in the statement of cash flows are (1)operating,which involve using cash to research,develop,purchase,produce,distribute,and market products and services as well as receiving cash from selling products and services; (2)financing,which are the cash inflows and cash outflows related to stockholder investments and dividends and long-term borrowing and repaying cash from lending and (3)investing,which represent the cash inflows and outflows from the purchase and sale of long-term assets.