Question

Describe three examples of financing activities, and identify whether each of them represents cash collected or cash spent.

Answer 1

Three examples of financing activities are issuing stocks, borrowing from banks, and reinvesting profits.

Step-by-step explanation:

Three examples of financing activities are:

1. Issuing stocks: This represents cash collected by companies when they sell shares of ownership in the company to investors.
2. Borrowing from banks: This represents cash received by companies when they take loans from banks.
3. Reinvesting profits: This represents cash spent by companies when they use their own profits to invest in new projects or assets.