Explain the What Value Separating Cash Flows into Operating Activities,investing

question 158

Essay

Explain the what value separating cash flows into operating activities,investing activities,and financing activities has to financial statement users when it comes analyzing cash flows and the company's financial condition.

---

Definitions:

Credit

Amount entered on the right side of an account.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future.

Depreciation Expense

The allocated cost of an asset over its useful life, representing wear and tear, decay, or decline in value.