Which of the following would not represent a financing activity?

Question

Quizplus · Accepted Answer

Collecting cash from customers represents operating activities, not financing activities. Financing activities involve obtaining or repaying capital, such as issuing stock, borrowing money, or paying dividends. Option A could be considered a financing activity if the dividends are funded by obtaining outside capital. Option B involves an injection of owner financing, which is a financing activity. Option C involves borrowing money, which is also a financing activity.

Which of the Following Would Not Represent a Financing Activity