Any Transaction or Set of Transactions That Brings Together Two

question 31

Short Answer

Any transaction or set of transactions that brings together two or more previously separate entities to form a single accounting entity is called a ____________________.

---

Definitions:

Operating Activities

Business activities directly related to producing and delivering goods and services, affecting a company's cash flow.

Cash Flows

The overall volume of cash inflows and outflows within a corporation, significantly affecting its liquid assets.

Operating Activities

The day-to-day actions that are involved in running a business, such as buying, selling, and producing goods or services.

Indirect Method

A way of preparing the statement of cash flows where net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.