Practicing Success
A company that issues stocks and bonds to raise funds results in: |
Decrease in Cash Increase in Cash Increase in Equity Increase in Liabilities |
Increase in Cash |
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. |