Financing activities increase and decrease the long-term assets available to the business.

Question

Quizplus · Accepted Answer

Financing activities typically involve raising capital through issuing debt or equity, or repaying such obligations. These activities do not directly impact the long-term assets available to the business. However, they may indirectly affect such assets by providing additional funds that can be used for investments in long-term assets.

Financing Activities Increase and Decrease the Long-Term Assets Available to the Business