How would these items be classified in a statement of cash flows prepared for a hairdressing franchise?
i.Payment of $600 for hairdressing supplies.
ii.Takings from customers for the month.
iii.Capital paid into the business by the owner.

Question

Quizplus · Accepted Answer

i. Payment for hairdressing supplies is a regular business expense, classified as an operating outflow. ii. Takings from customers are the primary source of revenue, classified as an operating inflow. iii. Capital paid into the business by the owner is a contribution to the business's equity, classified as a financing inflow.

How Would These Items Be Classified in a Statement of Cash