Question

On the statement of cash flows, activities that obtain the cash needed to launch and sustain a company are:

a) Operating activities
b) Investing activities
c) Financing activities
d) Non-operating activities

Answer 1

Financing activities involve obtaining cash to launch and sustain a company.

Step-by-step explanation:

On the statement of cash flows, the activities that obtain the cash needed to launch and sustain a company are categorized as Financing activities. Financing activities involve obtaining funds from external sources such as issuing bonds, borrowing money from banks or bonds, or selling stock.

For example, when a company issues bonds or borrows money, they receive cash that can be used to finance their operations. Similarly, if a company sells stock, they receive cash from investors that can be used to support the growth and development of the company.