Financing activities typically involve balance sheet accounts classified as:
A)current assets and current liabilities.
B)current liabilities and shareholders' equity.
C)long-term liabilities and shareholders' equity.
D)current liabilities and long-term liabilities.

Question

Quizplus · Accepted Answer

Financing activities usually involve long-term liabilities, such as loans and bonds, and shareholders' equity, such as issuing stocks. Current assets and liabilities are typically involved in operating activities, while current liabilities are involved in the payment of dividends or repurchasing shares, which fall under the category of investing activities.

Financing Activities Typically Involve Balance Sheet Accounts Classified As