What Are Financing Activities?

Financing activities are transactions involving long-term liabilities, owner’s equity and changes to short-term borrowings. These activities involve the flow of cash and cash equivalents between the company and its sources of finance i.e. the investors and creditors for non-trading liabilities such as long-term loans, bonds payable etc. The cash flow from financing activities are the funds that the business took […]

Finance vs. Economics: What’s the Difference?

Finance vs. Economics: An Overview Although they are often taught and presented as separate disciplines, economics and finance are interrelated and inform and influence each other. Investors care about these studies because they also influence the markets to a great degree. It’s important for investors to avoid “either/or” arguments regarding economics and finance; both are important and have valid applications. As a general social science, the […]

Is Finance an Art or a Science?

The short answer to this question is both. Finance As a Science Finance, as a field of study and an area of business, definitely has strong roots in related-scientific areas, such as statistics and mathematics. Furthermore, many modern financial theories resemble scientific or mathematical formulas. However, there is no denying the fact that the financial industry also includes non-scientific elements that liken it […]