QUESTION 15 Which item below would be categorized as cash inflows from financing

Question

QUESTION 15 Which item below would be categorized as cash inflows from financing activities? Proceeds from issuing the firm's own equity securities. Cash from sales of goods or services. Cash from dividends on equity securities. Cash from returns on interest-earning assets. QUESTION 16 Which items below would be categorized as cash inflows from investing activities? Cash collections from loans (principal) to others.. Purchases of debt or equity securities of other entities. Cash from sales of property, plant and equipment and cash from payments of dividends. Purchases of property, plant and equipment

Explanation / Answer

Cash flow from financing (CFF) activities is a category in a company’s cash flow statement that accounts for external activities that allow a firm to raise capital. In addition to raising capital, financing activities also include repaying investors, adding or changing loans, or issuing more stock. Cash flow from financing activities shows investors the company’s financial strength.

15. Third option is correct

Cash flow from investing activities is an item on the cash flow statement that reports the aggregate change in a company's cash position resulting from investment gains or losses and changes resulting from amounts spent on investments in capital assets, such as plant and equipment.

16 . Fourth option is correct

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