Which of the following is considered a component of financing activities?

In the context of financial activities, obtaining capital from owners is recognized as a financing activity because it involves transactions that affect the equity and debt of a business. Financing activities primarily encompass borrowing funds, issuing stock, repaying debt, and any other transactions that influence the financial structure of a company.

When a company raises capital from its owners—whether through the issuance of stock or contributions by owners—it directly impacts equity financing. This activity is crucial because it provides the necessary resources for the company to invest in operations, purchase assets, or manage cash flow.

In contrast, the other activities mentioned do not fall under financing activities. Cash payments to suppliers relate to operating activities, as they involve the day-to-day expenses necessary to keep the business running. Acquiring inventory is also an operational activity, tied to the direct costs of goods sold. Lastly, payments for administrative expenses pertain to operational costs, which are necessary for business management but are not considered financing activities. Thus, obtaining capital from owners stands out as the key activity related to financing in this context.