In the context of a firm's statement of cash flows, ________ include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock, or buying back outstanding bonds.
A) investing activities
B) financing activities
C) operating activities
D) liquidity activities
E) capital activities

Question

Quizplus · Accepted Answer

Financing activities refer to cash inflows and outflows related to raising and repaying funds through debt or equity financing. This includes activities like issuing bonds, taking out loans, issuing stock, paying dividends, and buying back outstanding stock or bonds.

In the Context of a Firm's Statement of Cash Flows