Financing activities involve
A) lending money to other entities and collecting on those loans.
B) cash receipts from sales of goods and services.
C) acquiring and disposing of productive long-lived assets.
D) long-term liability and owners' equity items.

Question

Quizplus · Accepted Answer

Financing activities involve obtaining funds from long-term liability and owners' equity items, such as issuing bonds or stock, and repaying the principal on those items. It also includes paying dividends to shareholders. Lending money to others and collecting on those loans is considered investing activities. Cash receipts from sales of goods and services and acquiring and disposing of productive long-lived assets are both operating activities.

Financing Activities Involve