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Transition periods are commonly accompanied by a shakeout during which weaker businesses fail,withdraw from the industry,or are acquired by other firms.
Financing Activities
These are transactions and events that relate to how a company finances its operations, including issuing equity, obtaining loans, or paying dividends.
Investing Activities
Financial transactions related to the acquisition or sale of long-term assets and other investments not included in cash equivalents.
Operating Activities
Transactions and other events that affect the net income of a business, relating to its principal revenue-producing activities.
Accounting Equation
The fundamental equation of accounting, representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Equity).
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