Financing Activities are the activities that result in changes in the size and composition of the owner's capital and borrowings of the company.

True

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False

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Solution

The correct option is A True
Financing activities are activities that result in changes in the size and composition of the owners'capital and borrowings of the enterprise. e.g., cash proceeds from issue of equity shares, debentures, raising long-term loans, repayment of bank loans, etc. Cash proceeds from issuing shares (equity / preference).

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Similar questions

Cash proceeds from issue of debentures, loans, bonds and other short/ long-term borrowings will result in cash ___ from financing activities.

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