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A statement of cash flows classifies cash receipts and cash payments into what 3 categories of activity? For each category of activity, share 2 specific examples of both cash receipts and cash payments based on 2 different business scenarios of your choosing. The business scenarios you choose can be based on real or fictional companies. For example, if you chose Uber and the fictional MarksABunch Art Supplies company, you would share 6 examples of cash receipts and cash payments per company, each broken out into one of the 3 different categories of activity presented in a statement of cash flows.

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Indeed, a statement of cash flows classifies cash receipts and payments into three categories of Operating, Investing, and Financing activities.

What are the three categories of activity?

The three categories of activity into which the statement of cash flows is divided are:

  • Operating Activity
  • Investing Activity
  • Financing Activity.

Some of the cash receipts and payments under these three categories are:

Operating Activities:

  • Receipt of cash from customers
  • Payments for materials from suppliers and vendors
  • Cost of delivering raw materials and finished goods
  • Paying employees and managers
  • Paying income taxes
  • Payments or receipts of rent.

Financing Activities:

  • Receiving cash from debtholders
  • Repaying long-term debts
  • Paying interest
  • Cash receipts from stock issuance
  • Paying dividends to stockholders.

Investing Activities:

  • Receipts from investment loans
  • Payments for investment loans
  • Receipt from the sale of assets
  • Receipt from the sale of marketable securities
  • Payment for the purchase of assets
  • Payment for the purchase of marketable securities.

Thus, the operating activities differ from the financing and investing activities because the latter are not the organization's core activities.

Learn more about the statement of cash flow activities at https://brainly.com/question/27454259

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