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the statement of cash flows has an investing and financing activities section. What is the difference...

the statement of cash flows has an investing and financing activities section. What is the difference between

these two sections? Can you provide an example of a financing activity or an investing activity?

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Answer #1

Investing activity includes the cash inflows and outflows from inventing in the own entity or other entities.

Financing activity includes the cash inflows and outflows from issuing debt or equity.

Investing activity example - Acquisition and disposal of PP&E and intangibles.

Financing activity example - Borrowing or repaying a loan.

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