Which section of the cash flow statement includes transactions related to company loans?

The section of the cash flow statement that includes transactions related to company loans is the financing section. This section is specifically designed to track cash flows that relate to funding the company through various means, including the issuance and repayment of debt and equity.

When a company takes out a loan, it receives cash inflow, which increases its financing activities. Conversely, when a company repays a loan, this represents a cash outflow. Both these activities are critical in understanding how a company manages its capital structure and its ability to fund operations and growth through borrowing.

Understanding this helps a financial professional recognize the implications of financing activities on a company's liquidity and cash position, illustrating how borrowing and repayments influence the overall financial health of the organization. Furthermore, the financing section provides insights into the company's strategic choices regarding how it leverages debt in comparison to equity financing.