Final answer:
Cash inflows and outflows involving stockholders and creditors are classified as financing activities.
Step-by-step explanation:
Cash inflows and outflows involving stockholders and creditors are classified as financing activities.
In the context of financial accounting, cash flows are classified into three categories: operating activities, investing activities, and financing activities. Financing activities include transactions related to obtaining and repaying funds from owners (stockholders) and creditors.
Examples of financing activities include issuing stock to raise capital, paying dividends to stockholders, borrowing money from creditors, and repaying loans.