Financing activities definition. Analyzing the definition of key terms often provides more insight about concepts. Financing activities can be defined as – Transactions with owners and creditors that include obtaining cash from issuing debt, repaying amounts borrowed, and obtaining cash from or distributing cash to owners. Financing activities can be thought of a one of the three sections of a statement of cash flows, financing activities being the third and final sections. The financing activities section will be the same whether we use a direct method or an indirect method statement of cash flows. Financing activities on the statement of cash flows will include cash flow from debt transactions and cash flow related to the owners in the form of dividends or stock sales.
