The format of financial statement varies from country to country. The FASB and IASB propose that financial

Question:

The format of financial statement varies from country to country. The FASB and IASB propose that in the future be organized using the same format currently used in the statement of cash flows––operating, investing, and financing activities. This would greatly change the current format used to prepare the income statement and the
1. Explain the differences among operating, investing, and financing activities. You might want to refer back to the first section in Chapter 11 on the statement of cash flows.
2. Provide at least one example of an account reported in the income statement that would be classified as
(a) An operating activity,
(b) An investing activity,
(c) A financing activity.
3. Provide at least one example of an account reported in the that would be classified as
(a) An operating activity,
(b) An investing activity,
(c) A financing activity.

Financial Statements
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Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...