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What Is The Main Deference between in Investment Activity and Financial Activities? How Finance Manager Will Categorize By Risk Wise?

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Question added by SAJJAD AHMAD , Finance Controller , Royal Grand Hotel
Date Posted: 2014/05/04
Fahd Mohammed Suleman
by Fahd Mohammed Suleman , CFO , Tajeel Business Commercial Services

Investing activities

Examples of Investing activities are

  • Purchase or Sale of an asset (assets can be land, building, equipment, marketable securities, etc.)
  • Loans made to suppliers or received from customers
  • Payments related to mergers and acquisition.

 

Financing activities

 

  • Dividends paid
  • Sale or repurchase of the company's stock
  • Net borrowings
  • Payment of dividend tax
  • Repayment of debt principal, including capital leases

 

A general rule is More risk should have more return.

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