Obtaining resources for the corporation from investors or debt-holders and the return of resources to shareholders and debt-holders is considered part of which of these activities on the Statement of Cash Flows?
A)Operating activities
B)Investing activities
C)Financing activities
D)none of these

Question

Quizplus · Accepted Answer

Obtaining resources from investors or debt-holders and returning resources to shareholders and debt-holders are both examples of financing activities, as they involve the procurement and management of the company's capital structure. The other options (A and B) refer to different types of cash flow transactions, such as revenue generation through operations or investment in long-term assets, respectively.

Obtaining Resources for the Corporation from Investors or Debt-Holders and the Return