Transactions that provide cash to the business to fund its activities are:
A)operating activities.
B)financing activities.
C)investing activities.
D)outflows or uses of cash.

Question

Quizplus · Accepted Answer

Financing activities relate to transactions that involve raising capital, such as issuing stock, obtaining loans or repaying them, and paying dividends. These activities provide cash to the business, which can be used to fund its operations. Therefore, financing activities are the best choice for this question. Operating activities are transactions related to the core business operations, such as sales and expenses, that generate revenue or incur costs, while investing activities involve the acquisition or disposal of long-term assets, such as property, plant, and equipment or investments in other companies. Outflows or uses of cash can refer to any transaction that results in a decrease in cash balances, including payments for expenses or investments.

Transactions That Provide Cash to the Business to Fund Its