Financing activity
Financing activity is any activity relating to raising money from investors and creditors such as the issuance of stocks, bonds, and long-term notes; also, repurchase of outstanding stock and retiring bonds and notes as well as paying dividends.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Financing activities. Activities relating to raising money from investors and creditors such as the issuance of stocks, bonds, and long-term notes; also, repurchase of outstanding stock and retiring bonds and notes as well as paying dividends.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Financing activities. Activities that either generate capital for the company or pay it back, such as issuing stock or long-term debt, paying dividends, and repaying principal amounts on loans; this includes all activities that affect long-term liabilities and owners' equity.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
