Accounting Activities

Question 1

What are the 3 activities in a business?

Answer 1

1. Operating activities
2. Investment activities
3. Financing activities

Question 2

Define operating activities

Answer 2

Any activity does a business does to provide goods and services on the market

Question 3

Define financing activities

Answer 3

Activities from cashflows between a company and its owners through issuing bonds, selling stok or buying stock

Question 4

Define investing activities

Answer 4

Activities that are the expenditure on long-term assets

Question 5

Name 3 examples of operating activities

Answer 5

1. Interest paid
2. Taxes paid
3. Cash paid to employees

Question 6

Name 1 example of investing activiites

Answer 6

1. Selling an asset

Question 7

Name 3 examples of financing activities

Answer 7

1. Paying dividends
2. Paying long-term debt
3. Issuing common stock