707 B
707 B
Here's how to remember the three sections:
- Operating Activities — day-to-day business: cash from customers, paying suppliers, interest paid
- Financing Activities — how the company funds itself: issuing shares, repaying debt, paying dividends to shareholders
- Investing Activities — what the company does with extra money: buying/selling equipment (A), and dividends received from associates (D)
The tricky ones here were A and D:
- A (buying equipment) → Investing, not Financing
- D (dividends received from associates) → Investing Activities in Trans-Canada's statements
The key distinction: dividends paid = Financing, dividends received = Investing.