Question

To identify all the operating, investing, and financing activities using a spreadsheet, we must account for the changes in each account on the: ?

1) Income Statement
2) Balance Sheet
3) Statement of Cash Flows
4) Statement of Retained Earnings

Answer 1

Operating, investing, and financing activities can be identified using the 1. Statement of Cash Flows, which categorizes cash inflows and outflows into three main activities: operating, investing, and financing.

Step-by-step explanation:

Operating, investing, and financing activities can be identified using the Statement of Cash Flows. The Statement of Cash Flows summarizes the cash inflows and outflows of a business during a specific period of time and categorizes them into operating activities, investing activities, and financing activities.

Operating activities are the day-to-day activities of a business that involve cash inflows and outflows directly related to the production and sale of goods and services. Examples of operating activities include cash received from customers, cash paid to suppliers, and cash paid to employees.

Investing activities involve the acquisition or disposal of long-term assets, such as purchasing or selling property, plant, and equipment or investing in securities. The cash flows from investing activities can provide insights into a company's investment strategies and potential for future growth.

Financing activities involve raising and repaying capital, such as issuing or repurchasing shares of stock, borrowing or repaying loans, and paying dividends. These cash flows reflect the company's financial structure and the decisions made by its owners and management.