In good years, dailey industries often loans cash to other companies, but in difficult years, they have to borrow cash from other entities. how would they record these differently on the statement of cash flows

Respuesta :

Any sort of funds used In financing a firm is recorded in the Financing activities while the loans cash will be recorded in the Financing activities of the statement of cash flows as well.

What is the Financing activities of cash flows?

This part of cash flows record the financing activities such as raising money through lending or issuing a bond as well as paying back to the investors.

Therefore, both transactions will be recorded in the financing activities of cash flows.

Read more about financing activities

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