a company experienced an event that had no affect on the amount of total assets or net income, but did cause a cash outflow from investing activities. the event that caused this could have been .



Answer :

An incident occurred at a corporation that had no impact on total assets or net income, but did result in a cash outflow from investing operations due to a loan with a three-year term to maturity.

Cash transactions involving net income are considered operating activities. Cash transactions involving noncurrent assets are considered investing. Cash transactions involving noncurrent liabilities and owners' equity are considered financing activities. Operating, investing, and financing operations are the three different types of cash flows. Transactions involving equities, loans, and dividends are all examples of financing operations. Investors can learn about a company's financial health and how well its capital structure is managed by looking at the cash flow from financing operations.

Financial activities are company transactions or occurrences that have an impact on long-term liabilities and equity. In other words, financial activities include any dealings with lenders or investing that are utilized to finance business growth or operations. The third group of cash transactions shown on the statement of cash flows is these transactions.

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