When a company obtains cash from shareholders, returns cash to shareholders, borrows from creditors, and repays...
When a company obtains cash from shareholders, returns cash to shareholders, borrows from creditors, and repays amounts borrowed from creditors.
a. Activity Classification
b. Financing Activities
c. Operating Avtivities
d. Investing Activities
Homework Answers
Answer is option b. Financing activities
Financing activities includes procurement of funds ( loan fund and own fund) and repayment of funds.
Operating activities includes normal business activities in the company.
Investing activities includes investments made by the company in fixed assets , or investment in other company's shares. Etc.
Please comment if you have any doubt
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