Question

What is the inflow of cash from financing activities called?

1) OI: Inflow of Cash from Operating Activities
2) OO: Outflow of Cash From Operating Activities
3) II: Inflow of Cash from Investing Activities
4) IO: Outflow of Cash from Investing Activities
5) FI: Inflow of Cash from Financing Activity
6) FO: Outflow of Cash from Financing Activities

Answer 1

The correct term for the inflow of cash from financing activities is FI: Inflow of Cash from Financing Activity, which involves equity, debt, or other financing instruments.

Step-by-step explanation:

The inflow of cash from financing activities is called FI: Inflow of Cash from Financing Activity. This term is associated with the flow of funds in the form of equity, debt, or other financing mechanisms. Companies acquire financing by various means such as issuing stocks, bonds, or taking out loans, which leads to an inflow of cash that can be used for business operations, expansion, or other financial needs. The impact of inflows and outflows from financing activities is reflected in the company's cash flow statement.