Geri's Gift Store wants to compute the revenues and expenses for its most recent accounting period to determine if it is making extra cash that it can use to invest in increased long-term capacity or to pay off its debts. To determine this, Geri should calculate cash from ________ activities by combining the changes in the revenue accounts, expense accounts, current asset accounts, and current liability accounts.

Question

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In this scenario, Geri should calculate cash from operating activities by combining the changes in the revenue accounts, expense accounts, current asset accounts, and current liability accounts. This category of cash flows includes all the accounts on the balance sheet that relate to computing revenues and expenses for the accounting period.

Geri's Gift Store Wants to Compute the Revenues and Expenses