Question

Write two examples of cash inflows by financing activities.

Hint:

Financing activities provide cash inflows through the issuance of shares or borrowing, helping the company raise funds for its operations.

Answer 1

Step 1: Definition of financing activities.
Financing activities include transactions that affect the company’s equity and borrowings. Cash inflows from financing activities are funds received by the company for the purpose of financing its operations and investments.
Step 2: Examples of cash inflows from financing activities.
1. **Issuance of Shares:** Cash received from issuing equity or preference shares to investors.
2. **Borrowings from Banks or Financial Institutions:** Cash received from loans taken from banks or other financial institutions.
Step 3: Conclusion.
Thus, cash inflows from financing activities include funds received from issuing shares and borrowing loans. Final Answer: \[ \boxed{\text{1. Issuance of shares, 2. Borrowings from banks or financial institutions}} \]