Financing activities provide the means organizations use to pay for resources such as land, buildings, and equipment.

Question

Quizplus · Accepted Answer

Financing activities involve obtaining funds from external sources, such as issuing stock, taking out loans, or issuing bonds. These funds can then be used to pay for resources needed by the organization, such as land, buildings, and equipment. Therefore, financing activities do provide the means for organizations to pay for these resources.

Financing Activities Provide the Means Organizations Use to Pay for Resources