Financing activities are initiated when money or other resources are obtained from short-term nontrade creditors, long-term creditors, and/or owners. Financing activities are completed when amounts owed are repaid to or otherwise settled with these same creditors and/or owners. Investing activities are initiated when the money obtained from financing activities is applied to nonoperating uses, such as buying investment securities and/or productive assets like equipment, buildings, land, or furniture and fixtures. Investing activities are completed when the investment securities and/or productive assets are sold. Operating activities occur when the money obtained from financing activities and the productive assets obtained from investing activities are applied to either purchase or produce goods and services for sale. These operating activities are substantially completed when goods are delivered or when services are performed.

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What Are Financing Activities HubAccountingWhat Are Financing Activities Financing activities are transactions involving longterm liabilities owners equity and changes to shortterm borrowings These ac... View the full answer