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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Give two examples of a company’s (a) cash inflows from financing activities and (b) cash outflows for financing activities.

To determine

Provide two examples of (a) cash inflows from financing activities and (b) cash outflows from financing activities.

Explanation

Financing activities: Financing activities include cash inflows and outflows from issuance of common stock and debt, payment of debt and dividends.

Cash inflows and outflows from financing activities:

Cash inflows: The amount of cash received by a company from the financing activities of the business during a certain period is referred to as cash inflow.

Cash outflows: The amount of cash paid by a company for the financing activities of the business during a certain period is referred to as cash outflow.

Examples of cash inflows and cash outflows from financing activities:

(a)   Cash inflows from financing activities:

a) Cash proceeds from the issue of equity or preference shares or similar other instruments...

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