Define and Discuss the Differences Between Operating, Investing, and Financing

question 23

Essay

Define and discuss the differences between operating, investing, and financing activities.

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a set of accounting standards and procedures used to prepare financial statements in the US.

Statement of Activities

A financial report summarizing a nonprofit organization's revenues, expenses, and changes in net assets for a specific period.

Supporting Service Costs

Expenses related to activities that do not directly contribute to a company's primary business operations but support the overall functionality and efficiency of the business.