Which of the following is a typical financing activity?
A)Payment of dividends
B)Payment of interest expense
C)Payment of wages
D)Purchases of inventory

Question

Quizplus · Accepted Answer

Payment of dividends is considered a financing activity because it relates to the actions that affect the equity and long-term liabilities of a company. Financing activities include transactions involving the company's owners or creditors, such as issuing shares, repaying loans, or distributing dividends.

Which of the Following Is a Typical Financing Activity