Financing Activities: The financing activity means those activities of business that increase the capital of business. As company needs finance to run the business, the company may demands funds from public, banks and from financial institutions. Investing Activities: The fixed assets are needed to run the business, as the product of the company can make only through machineries. The investing activity of business deals with the sale purchase of fixed assets and investment of the company. Operating Activities: Operating activities are also known as the core business activities of the business. The sale purchase and all the related activities of the business are considered as operating activity of the business. To identify: The type of business activity.

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Please provide the answer to this financial accounting question using the right approach.

Answer 1

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Chapter 1, Problem 13PSB

To determine

Financing Activities:

The financing activity means those activities of business that increase the capital of business. As company needs finance to run the business, the company may demands funds from public, banks and from financial institutions.

Investing Activities:

The fixed assets are needed to run the business, as the product of the company can make only through machineries. The investing activity of business deals with the sale purchase of fixed assets and investment of the company.

Operating Activities:

Operating activities are also known as the core business activities of the business. The sale purchase and all the related activities of the business are considered as operating activity of the business.

To identify: The type of business activity.

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