Borrowing monies from financial institutions to fund the firm's revenue growth is an example of which cash-related activity in the cash flow cycle?

Question

Quizplus · Accepted Answer

Borrowing money from financial institutions is a form of financing activity, as it involves obtaining funds to support the company's operations and growth. Financing activities are one of the three main categories of cash-related activities in the cash flow cycle, alongside operating activities (which involve generating revenue through day-to-day business operations) and investing activities (which involve buying or selling assets to support the business).

Borrowing Monies from Financial Institutions to Fund the Firm's Revenue