Of the three major activities of a firm, are cash transactions associated with running the business.
Question
Of the three major activities of a firm, are cash transactions associated with running the business.
Solution
It seems like your question is incomplete. However, I can tell you that the three major activities of a firm typically include operating, investing, and financing activities.
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Operating Activities: These are the primary activities of a business. They include cash transactions associated with running the business, such as cash received from customers, cash paid to suppliers and employees, interest received or paid, and taxes paid.
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Investing Activities: These involve the acquisition and disposal of long-term assets, such as property, plant, and equipment, as well as investment in other businesses.
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Financing Activities: These are activities that result in changes in the size and composition of the owner's capital and borrowings from the long-term creditors of the firm. They include issuing shares, paying dividends, borrowing long-term loans, and repaying loans.
So, to answer your question, cash transactions associated with running the business are part of the firm's operating activities.
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