Business activities that generate or use cash are classified as operating, investing, or financing activities on the statement of cash flows.

Question

Quizplus · Accepted Answer

This statement is true. Operating activities involve transactions related to the primary operations of the company, while investing activities involve the purchase or sale of long-term assets, and financing activities involve transactions related to the financing of the company, such as issuing or repurchasing stock or borrowing money.

Business Activities That Generate or Use Cash Are Classified as Operating