Business Activities: Operating, Investing and Financing (Financial Accounting Tutorial #4)

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In this tutorial we discuss the various business activities a company encounters on a day to day basis. The activities of any company can be sorted into either operating, investing or financing activities.

Operating normally has to do with current assets/current liabilities or working capital along with expenses and revenues.

Investing activities involve long term or non-current assets like the purchase and sale of capital assets like property or investments (some examples).

Financing activities involve non-current liabilities and equity accounts. The issuance of more shares to raise cash or the issuance of a dividend or repayment of bonds are all prime examples.

Watch the video to get a basic idea as to how business activities are split into these three sections! Leave a comment or question if you have any trouble understanding the concept!

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