Financing activities involveA) lending money to other entities and collecting on those loans.B) cash receipts from sales of goods and services.C) acquiring and disposing of productive long-lived assets.D) long-term liability and stockholders' equity items.

Question

Financing activities involveA)  lending money to other entities and collecting on those loans.B)  cash receipts from sales of goods and services.C)  acquiring and disposing of productive long-lived assets.D)  long-term liability and stockholders' equity items.

Rafaela Pangalangan · Accepted Answer

Final Answer : D, Explanation :  Financing activities involve obtaining funds from long-term liability and stockholders' equity items, such as issuing bonds or stocks, repaying loans, or paying dividends to shareholders. These activities are related to the company's overall funding structure and capital management. Options A, B, and C are related to operating and investing activities rather than financing activities.

Financing activities involve

A) lending money to other entities and collecting on those loans.
B) cash receipts from sales of goods and services.
C) acquiring and disposing of productive long-lived assets.
D) long-term liability and stockholders' equity items.

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Learning Objectives

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