As governments work to protect the business activities of their citizens, terrorism, piracy, hijacking and cybercrime are areas of increasing concern. These crimes are mainly connected to the Internet.
Any endeavor undertaken by a company with the primary intention of making a profit is referred to as a business activity. It is a broad term that refers to the business activities of all economic activities that a company regularly engages in. Continuous business operations, such as running the Internet, investing and financing, are aimed at maximizing shareholder value.
Operation, investment and financing are the three main categories of business activity. The statement of cash flows lists the cash flows of the business activities that each of these activities used and generated. The purpose of the statement of cash flows is to reconcile net internet income on an accrual basis with cash flows. In order to reconcile net income with actual cash inflows and outflows, the cash impact of changes in the balance sheet is identified and taken from the bottom of the income statement.
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