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

question 31

Essay

Explain the value that 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:

Illegal Offer

A proposal to enter into an agreement that is against the law and therefore unenforceable.

Rescission

The legal act of canceling, revoking, or terminating a contract, returning all parties to their original positions prior to the contract.

Securities Act of 1933

A U.S. law enacted to ensure more transparency in financial statements so investors can make informed decisions about investments.

Securities Exchange Act of 1934

A U.S. federal law regulating the secondary trading of securities (stocks, bonds, and debentures) to protect investors against malpractice.