The business owners obtain financing from outside investors, which result to an inflow of cash into the company. This transaction is considered to be part of which cycle?Select one:a.financing cycleb.production cyclec.revenue cycled.payroll cycle
Question
The business owners obtain financing from outside investors, which result to an inflow of cash into the company. This transaction is considered to be part of which cycle?Select one:a.financing cycleb.production cyclec.revenue cycled.payroll cycle
Solution
The transaction you're referring to is part of the financing cycle. This cycle involves the acquisition of funds to run the business, which can come from various sources such as investors, loans, or the business owners themselves. So, the correct answer is a. financing cycle.
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