The Three Activities That Explain the Cash Inflows and Outflows

question 28

True/False

The three activities that explain the cash inflows and outflows of a business are the operating, selling, and financing activities.

---

Definitions:

Benefit

An advantage, improvement, or positive outcome gained from something or as a result of a particular action or situation.

Reciprocity Principle

A social norm suggesting that people tend to respond to actions with similar actions, promoting mutual exchange and cooperation.

Compliance Principle

A psychological concept where individuals change their behavior due to explicit or implicit pressure from others, often to align with societal or group norms.

Donation

The act of giving something, often money or goods, to help a person, group, or organization.