Cash used to retire long-term debt that was used to build a new factory is classified as an investing activity.

Name: Cash used to retire long-term debt that was used to build a new factory is classified as an investing activity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash used to retire long-term debt is considered a financing activity. Investing activities involve the acquisition or sale of long-term assets, such as property, plant, and equipment.

Cash Used to Retire Long-Term Debt That Was Used to Build