What is an example of a cash inflow from Financing Activities?

The issuance of common stock is a clear example of a cash inflow from financing activities. In financial accounting, financing activities involve transactions that result in changes in the equity and borrowings of a business. When a company issues common stock, it is raising funds from investors, which results in cash inflow. This influx of cash can be used for various purposes, such as funding operations, expanding the business, or paying off existing debts.

In contrast, expenses paid for operations, payments for long-term debt, and the purchase of fixed assets are categorized differently. Operational expenses are part of cash flow from operating activities, reflecting day-to-day business operations. Payments for long-term debt represent cash outflows, which are considered cash used in financing activities but do not reflect inflows. Lastly, the purchase of fixed assets is a cash outflow related to investing activities, as it involves acquiring long-term resources rather than generating cash. Therefore, the issuance of common stock stands out as the correct answer, being the only option that results in a cash inflow within the context of financing activities.