What is a financing activity?
A)Activities involving the acquisition and disposal of long-term assets.
B)Activities involving redemption of the contributed equity of an entity.
C)Activities involving the principal revenue-producing activities of the entity.
D)Activities that do not involve cash.

Question

Quizplus · Accepted Answer

Financing activities typically involve either taking on new debt or redeeming the contributed equity of an entity. Therefore, option B is the correct choice as it specifically mentions redemption of contributed equity.

What Is a Financing Activity