Question

which activity remains financial activity for every enterprices?
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Answer 1

Answer:

Bank loan is a method by which every enterprise can raise finance irrespective of their ownership(public /private), scale(large /small /medium). No business can run without taking loans from banks, even if it is a huge established company.

Explanation:

Answer 2

Financing activities are transactions involving long-term liabilities, owner’s equity and changes to short-term borrowings. These activities involve the flow of cash and cash equivalents between the company and its sources of finance i.e. the investors and creditors for non-trading liabilities such as long-term loans, bonds payable etc.

The cash flow from financing activities are the funds that the business took in or paid to finance its activities. It’s one of the three sections on a company’s statement of cash flows, the other two being operating and investing activities.