ACTIVITY 48 OPERATING, INVESTING, OR FINANCING? Purpasei- Identify operating, inwesting, and financing activities. identify cash inflows and outflows. Understand the diflerence between cash-based and accrual-based accounting. Knistin Incerporated is preparing her financial statements. * For each transaction, record the effect on the financial statements, including the amount of change and the titie of the account. Record increases as a positive amount and decreases as a negative. * For the Statement of Cash Flows, also identify whether the amount would be reported as an Operating, Investing, or.Financing activity by circling 0,1 , or F, A portion of Q1 is completed for you. Statement of Cash flows Page 145