The business owners obtain financing from outside investors,which results in an inflow of cash into the company.This transaction is considered to be part of which cycle?
A) the revenue cycle
B) the payroll cycle
C) the production cycle
D) the financing cycle

Question

Quizplus · Accepted Answer

Financing cycle involves obtaining funding from investors or lenders which provides inflow of cash into the company. This cycle is separate from other operational cycles like revenue, payroll, and production.

The Business Owners Obtain Financing from Outside Investors,which Results in an Inflow