Practicing Success
Financing activities bring changes in _____. |
Size and composition in owners equities Borrowings of the enterprise Size and composition of owners equities and borrowings of the enterprise None of the options are correct |
Size and composition of owners equities and borrowings of the enterprise |
Financing activities center around the management of long-term funds or capital within an enterprise. These activities involve actions such as acquiring or repaying capital and borrowings. These financial activities can significantly impact the size and structure of the owners' capital and liabilities. According to Accounting Standard 3 (AS-3), disclosing cash flows related to financing activities separately is essential because it aids in forecasting future claims on cash flows by the providers of funds, both those providing capital and those lending to the enterprise. |