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1. The Above description is TRUE
2. The above description is FALSE
Option1 is the right answer.
Option 1 is correct.
1. The Above description is TRUE
(Option 1 is the right answer ( Te description is true
Yes the above statement is correct.
Financing activities include cash inflows from investors such as banks and shareholders, as well as cash outflows to shareholders as dividends as the company generates income.
Items under the financing activities section include:
· Dividends paid
· Sale or repurchase of the company's stock
· Net borrowings
· Repayment of debt principal, including capital leases
This term relates to cash flow statements. This section provides an overview of all business activities related to financing including public offerings, secondary offerings and debt financing. The section also shows the amount of cash being paid out for dividends, share repurchases and interest as well as financing and fundraising efforts.
financing Activities are such Activities,which are reported in it's own sections of the finacial statments ie cash flow statements.
The Statement is true. However, it is not just restricted to expend on operations. In this context, It is imperative to understand that every business has two broad categories of expenses
1. Expenses to run the daily operations of business (viz revenue expenses)
2. Expenses of Capital Nature (Viz purchase of plant, property and equipment)
Therefore Financing Activities should include obtaining funds for the financing operations of business as well as for Capital Expenditures.
Cash flow from financing (CFF) activities is a category in a company’s cash flow statement that accounts for activities that allow a firm to raise capital and repay investors such as charging loans,issuing cash dividends or issuing stocks.
The statement is true.
But it's not complet. The financing activities used to financing all the business activities such as the operation activities and the investing activities.
the statement is true but this is just one activity other activities like the repayment of a loan , Treasury stocks purchasing, Divideds payments are also a financing activites.
True as it invloves financing the business operations either through debts or through injection of equity into the busniness by issuing shares.
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