Practicing Success
Practicing Success
CUET Preparation Today
Which of the following statement is true regarding financing activities in a cash flow statement? |
They primarily involve revenue generation from operations They focus on short-term borrowings and interest payments They emphasize cash flows from investing activities They result in changes in owners' capital and borrowings |
They result in changes in owners' capital and borrowings |
Financing activities in a cash flow statement encompass transactions that lead to changes in the size and composition of owners' capital and borrowings of the enterprise. These activities are concerned with how a company raises and repays funds to support its operations and growth. They directly relate to the company's financial structure and its interactions with shareholders and creditors. |
