Financing activity

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Financing activity is any activity relating to raising money from investors and creditors such as the issuance of stocks, bonds, and long-term notes; also, repurchase of outstanding stock and retiring bonds and notes as well as paying dividends.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Financing activities. Activities relating to raising money from investors and creditors such as the issuance of stocks, bonds, and long-term notes; also, repurchase of outstanding stock and retiring bonds and notes as well as paying dividends.

According to Managerial Accounting by Braun, Tietz (5th edition),

Financing activities. Activities that either generate capital for the company or pay it back, such as issuing stock or long-term debt, paying dividends, and repaying principal amounts on loans; this includes all activities that affect long-term liabilities and owners' equity.

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