Question
Tax 9) Financing activities: (2pts) involve obtaining funds to operate a business involve obtaining assets such...
tax 9) Financing activities: (2pts) involve obtaining funds to operate a business involve obtaining assets such as buildings or equipment Ohelp to earn revenue and profits Ohelp to make wise investments in other companies
Answers
Answer is Option a)
Involve Obtaining funds to operate a business
A business needs finance to run business. In other words it needs funds so that assets can acquired and operations can be started . Obtaining Funds can be done through various ways like Equity, Preference shares, bonds, Long term loans from Bank Long term note payable, etc. A Cash Flow Statement has a separate tab for showing financing activities
Obtaining Funds from various sources is classified as financing activity in Cash Flow Statement. All issue of securities is taken as inflow of funds and repayment/repurchase/redemption is taken as outflow of funds.
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