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FINANCING ACTIVITIES INCLUDE :
– cash proceeds from issuing debentures, loans, notes, bonds and other short/ long term borrowing
-cash payments to owners to acquire or redeem the enterprise shares.INVESTING ACTIVITIES:
-Cash receipts from sale of shares or debentures of other enterprises.
-Cash payments to acquire shares or debentures of other enterprise’s
– Cash receipts from sales of shares1)Help me I don’t see the difference between the activities in finance and investing.
2) cash equivalents: are current assets that can be converted to cash easily and are affected by rates/ inflation..?
Why are you not watching my free lectures?? You cannot expect me to type them all out here 🙂
Financing is raising money to be able to run the company – so issuing shares, taking long-term loans.
Investing is mainly buying and selling non-current assets but does include buying and selling shares in other companies (but buying and selling shares in other companies is unlikely to be relevant in Paper F3).
Cash equivalents are short-term investments (but again are not very likely to be relevant for Paper F3)
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