Asked by
Aaliyah Coles
on Dec 17, 2024Verified
One section of a statement of cash flows, using the direct method, is financing activities.
Financing Activities
Activities that result in changes in the size and composition of the equity capital and borrowings of an entity.
Direct Method
A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed, as opposed to estimating them indirectly through differences in non-cash items.
Cash Flows
The aggregate sum of cash inflows and outflows in a business, significantly impacting its ability to meet short-term obligations.
- Ability to discern between operating, investing, and financing activities within various scenarios.
Verified Answer
AV
Learning Objectives
- Ability to discern between operating, investing, and financing activities within various scenarios.