Describe the Three Types of Activities Reported on the Statement

question 147

Essay

Describe the three types of activities reported on the statement of cash flows.

---

Definitions:

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives) that can be bought and sold in financial markets.

Equipment

Physical assets used in the operation of a business, including machinery, tools, and vehicles.

Floating-Rate Bonds

Bonds whose interest payments fluctuate with market interest rates.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value.