Cash flows from _____ activities include both inflows and outflows of cash from the external funding of a business.
financing
The answer to this question is financing activities.
Financing activities refer to the external funding of a business, including activities that involve the issuance and repayment of debt and equity, as well as the payment of dividends to shareholders. Financing activities result in cash inflows when a business or company raises funds from sources such as stocks, bonds, loans, or other external sources of finance.
Conversely, financing activities result in cash outflows when a business repays debts or pays dividends to shareholders. Examples of financing activities include the issuance of stock, payment of dividends, long-term borrowing, and the repayment of loans and debt.
It is important for businesses to manage their financing activities well, to ensure that they have sufficient cash flows to cover their liabilities and grow their businesses over time. Businesses must also ensure that they have access to adequate financing sources, to secure funding for new projects, investments, and growth opportunities.
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