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#cfa-level-1 #reading-23-financial-reporting-mechanics
Business activities may be classified into three groups for financial reporting purposes: operating, investing, and financing activities.
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2. THE CLASSIFICATION OF BUSINESS ACTIVITIES
ilar accounting treatment to similar types of business transactions. Therefore, a first step in understanding financial reporting mechanics is to understand how business activities are classified for financial reporting purposes. <span>Business activities may be classified into three groups for financial reporting purposes: operating, investing, and financing activities. Operating activities are those activities that are part of the day-to-day business functioning of an entity. Examples include the sale of meals by a restaurant, th


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