Financing activities involve raising money from outside sources. 
• Borrowing monies from bank or public to fund operations. E.g., Generates liabilities 
(debt) – notes payable is monies borrowed from the bank, bonds payable is monies 
borrowed from public. 
• Raising capital from public investors by issuing common stock (ownership) for cash. 
E.g., Payments of stockholder’s from profits are dividends. 
 Investing activities use the cash raised through financing activities for the purchase of the resources a 
company needs. 
• Purchasing or selling long-term assets. E.g., Buildings, land, equipment. 
• Purchasing or selling investments (stock or bonds) from other companies. 
 Operating activities are the day-to-day actions taken by a company to produce and sell products or 
provide service. 
• Selling goods or services to customers (revenues) 
• Purchasing inventory 
• Extending credit to customers to allow time to pay (accounts receivable) 
• Generating expenses to run day-to-day operations (rent expense, interest expense, 
insurance expense, marketing expense, wages expense). 
• Requesting credit or extended time to pay from suppliers for common purchases 
(accounts payable). 
• Generating other liabilities by delaying payment (income taxes payable, sales tax 
payable, wages payable, and interest payable)  activities involve raising money from outside sources.
• Borrowing monies from bank or public to fund operations. E.g., Generates liabilities
(debt) – notes payable is monies borrowed from the bank, bonds payable is monies
borrowed from public.
• Raising capital from public investors by issuing common stock (ownership) for cash.
E.g., Payments of stockholder’s from profits are dividends.
 Investing activities use the cash raised through financing activities for the purchase of the resources a
company needs.
• Purchasing or selling long-term assets. E.g., Buildings, land, equipment.
• Purchasing or selling investments (stock or bonds) from other companies.
 Operating activities are the day-to-day actions taken by a company to produce and sell products or
provide service.
• Selling goods or services to customers (revenues)
• Purchasing inventory
• Extending credit to customers to allow time to pay (accounts receivable)
• Generating expenses to run day-to-day operations (rent expense, interest expense,
insurance expense, marketing expense, wages expense).
• Requesting credit or extended time to pay from suppliers for common purchases
(accounts payable).
• Generating other liabilities by delaying payment (income taxes payable, sales tax
payable, wages payable, and interest payable)Financing activities involve raising money from outside sources.
• Borrowing monies from bank or public to fund operations. E.g., Generates liabilities
(debt) – notes payable is monies borrowed from the bank, bonds payable is monies
borrowed from public.
• Raising capital from public investors by issuing common stock (ownership) for cash.
E.g., Payments of stockholder’s from profits are dividends.
 Investing activities use the cash raised through financing activities for the purchase of the resources a
company needs.
• Purchasing or selling long-term assets. E.g., Buildings, land, equipment.
• Purchasing or selling investments (stock or bonds) from other companies.
 Operating activities are the day-to-day actions taken by a company to produce and sell products or
provide service.
• Selling goods or services to customers (revenues)
• Purchasing inventory
• Extending credit to customers to allow time to pay (accounts receivable)
• Generating expenses to run day-to-day operations (rent expense, interest expense,
insurance expense, marketing expense, wages expense).
• Requesting credit or extended time to pay from suppliers for common purchases
(accounts payable).
• Generating other liabilities by delaying payment (income taxes payable, sales tax
payable, wages payable, and interest payable) activities involve raising money from outside sources.
• Borrowing monies from bank or public to fund operations. E.g., Generates liabilities
(debt) – notes payable is monies borrowed from the bank, bonds payable is monies
borrowed from public.
• Raising capital from public investors by issuing common stock (ownership) for cash.
E.g., Payments of stockholder’s from profits are dividends.
 Investing activities use the cash raised through financing activities for the purchase of the resources a
company needs.
• Purchasing or selling long-term assets. E.g., Buildings, land, equipment.
• Purchasing or selling investments (stock or bonds) from other companies.
 Operating activities are the day-to-day actions taken by a company to produce and sell products or
provide service.
• Selling goods or services to customers (revenues)
• Purchasing inventory
• Extending credit to customers to allow time to pay (accounts receivable)
• Generating expenses to run day-to-day operations (rent expense, interest expense,
insurance expense, marketing expense, wages expense).
• Requesting credit or extended time to pay from suppliers for common purchases
(accounts payable).
• Generating other liabilities by delaying payment (income taxes payable, sales tax
payable, wages payable, and interest payable)inancing activities involve raising money from outside sources.
• Borrowing monies from bank or public to fund operations. E.g., Generates liabilities
(debt) – notes payable is monies borrowed from the bank, bonds payable is monies
borrowed from public.
• Raising capital from public investors by issuing common stock (ownership) for cash.
E.g., Payments of stockholder’s from profits are dividends.
 Investing activities use the cash raised through financing activities for the purchase of the resources a
company needs.
• Purchasing or selling long-term assets. E.g., Buildings, land, equipment.
• Purchasing or selling investments (stock or bonds) from other companies.
 Operating activities are the day-to-day actions taken by a company to produce and sell products or
provide service.
• Selling goods or services to customers (revenues)
• Purchasing inventory
• Extending credit to customers to allow time to pay (accounts receivable)
• Generating expenses to run day-to-day operations (rent expense, interest expense,
insurance expense, marketing expense, wages expense).
• Requesting credit or extended time to pay from suppliers for common purchases
(accounts payable).
• Generating other liabilities by delaying payment (income taxes payable, sales tax
payable, wages payable, and interest payable)