ابدأ بالتواصل مع الأشخاص وتبادل معارفك المهنية

أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.

متابعة

Financing Activities of a Business MEANS: Obtaining funds to finance the operation of the business.?

1. The Above description is TRUE

2. The above description is FALSE

user-image
تم إضافة السؤال من قبل Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union
تاريخ النشر: 2015/08/09
Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option1 is the right answer.

Faisal Iqbal Mohammad
من قبل Faisal Iqbal Mohammad , Senior Accountant , Vicky Apparels

Option 1 is correct.

1. The Above description is TRUE

alaa elhadary
من قبل alaa elhadary , general accountant , ALBAYAN GROUP

(Option 1 is the right answer  ( Te description is true 

Farid Khan
من قبل Farid Khan , Audit Manager Advisory and consultancy –Afghanistan-Pakistan , Baker Tilly Chartered Accountants Firm

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

 

Nikolaos Schizas
من قبل Nikolaos Schizas , Audit department head , Kyriacou & Tapaki, Accountants, Auditors & Business Advisors

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.

NOUFAL MELEVEETTIL
من قبل NOUFAL MELEVEETTIL , Accountant Cum Cashier , ABU DHABI POULTRY FARM

financing Activities are such Activities,which are reported in it's own sections of the finacial statments ie cash flow statements.

CA Sufyan Ukaye
من قبل CA Sufyan Ukaye , Group Internal Auditor , Al Rabban Holding

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.

APOLLONARY WAWIRE WEKESA
من قبل APOLLONARY WAWIRE WEKESA , Finance Officer , National Treasury of Kenya

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.

Khalaf Mohammed Edres Alwadiya
من قبل Khalaf Mohammed Edres Alwadiya , محاسب , وظيفة حكومية

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.

Mohamed Berber
من قبل Mohamed Berber

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.

Waqar Haider
من قبل Waqar Haider , Senior Accounting & Finance Officer , Rely Industries FZCO

True as it invloves financing the business operations either through debts or through injection of equity into the busniness by issuing shares.

هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟