Saturday, August 16, 2008

A Session of Q/A

rumi said... 
sir,we face some problem about the financing activities and operating activities in cash flow. Please give us some example and some entry that will help us in the exam. At last pray for us.

Dear Rumi:

Broadly speaking, if an activity affects the Income Statement, then it's an operating activity; if an activity affects equity or long-term liability items of the Balance Sheet, it's a financing activity. Please try to do chapter-end problems for practice.

Thanks.

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