An example of a financing activity is
A)purchase of property.
B)issuing shares.
C)sales to customers.
D)payment of taxes.

Question

Quizplus · Accepted Answer

Issuing shares is a financing activity as it involves raising capital by selling ownership interests in the company to investors. This activity directly affects the company's equity financing, which is a source of financing categorized under financing activities in the statement of cash flows. The other options (A, C, and D) are categorized under investing activities, operating activities, and taxes, respectively.

An Example of a Financing Activity Is