Financing activities typically involve 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 generally involve obtaining funds for the long-term operations of a business. Long-term liabilities and shareholders' equity are the two accounts that are used for long-term financing. Current assets and liabilities are typically used for short-term operations, while current liabilities alone are not sufficient for most long-term financing needs.

Financing Activities Typically Involve Accounts Classified as