Suppose you plan to start a cab rental business (non-aggregated). Create a list of activities that can be categorised under the operating, financing and investing activities.

The following list contains activities that may be added or subtracted from net profit when reconciling to cash flows from operating activities. Indicate whether each activity is added, subtracted or irrelevant.Increase in furniture and fixtures  Answer 1 Question 1Decrease in accrued wages Answer 2 Question 1Loss on sale of equipment Answer 3 Question 1Proceeds from borrowings Answer 4 Question 1Gain on sale of investments Answer 5 Question 1Increase in inventory Answer 6 Question 1Decrease in prepaid rent expenses  Answer 7 Question 1Amortization expenses Answer 8 Question 1

Match each activity with its classification on the statement of cash flows.InstructionsDrag and drop application.Purchasing inventory from vendorsPurchasing inventory from vendors drop zone empty.Signing a long-term promissory noteSigning a long-term promissory note drop zone empty.Selling equipmentSelling equipment drop zone empty.Financing ActivityOperating ActivityInvesting Activity

Which of the following items would be classified as an investing activity in a statement of cash flows?Group of answer choicesPayments for businesses.Proceeds from the repayment of related party loans.Proceeds from the sale of plant and equipment.All of the items would be classified as investing activities.

Buying assets required to operate a business is an example of a/an:  advertising activity.   financing activity.   investing activity.   operating activity.

In operating a business, rent, salaries, supplies, utilities and insurance are all examples of ______.Multiple choice question.liabilitiesoperating expensesrevenue accountsassets