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On the statement of changes in cash flows, being paid for work would be classified as a It summarizes the operating, financing, and investing activities of an entity.

What is financing?

Providing capital for investments, purchases, or business endeavors is the process of financing. Financial organizations like banks are in the business of lending money to individuals, businesses, and investors so they can fulfill their objectives. Any economic system that makes use of financing is essential because it enables businesses to buy goods that are out of their immediate price range.

To put it another way, financing is a means to use the temporal value of money (TVM) to employ predicted future cash flows for initiatives that are started today. Financing also benefits from the fact that some people in an economy will have extra cash that they want to invest to earn returns while others need money to make investments, which develops a market for those two types of transactions.

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