Is borrowing money an investing activity?

Is borrowing money from a bank an operating activity?

The interest paid on short-term bank loans is included in the operating activities section of the statement of cash flows.

What are lending activities?

Lending activities means advancing funds or credit to and collecting funds from another person; entering into security agreements, including executing mortgages, liens, factoring agreements, accounts receivable financing arrangements, condi- tional sales, sale and leaseback arrangements and installment.

What are examples of operating activities?

Some common operating activities include cash receipts from goods sold, payments to employees, taxes, and payments to suppliers. These activities can be found on a company’s financial statements and in particular the income statement and cash flow statement.

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