Respuesta :
In a cash flow, there are some steps taken for easy transaction. The three-stage process to determine cash provided or used by financing activities includes all of the following steps except to identify an increase or decrease in cash.
Transactions are grouped into the three types of activities in the statement of cash flows. they are operating, investing, and financing.
The three-step analysis to determine cash provided or used by investing activities includes:
- To reporting the cash flow effects
- To identify changes in investing-related accounts
- To explain the changes using T-accounts and reconstructed entries
The cash flow types is often used by companies to track and analyze to know the liquidity and solvency of the business.
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