Funds raised from financing activities should be invested in assets that can be used to carry on business operations.

Question

Quizplus · Accepted Answer

This statement is true as funds raised from financing activities (such as issuing bonds or shares) are typically used by a company to invest in assets that can be used to carry on their business operations, such as purchasing new equipment or expanding their facilities. The goal is to use these funds to increase long-term profitability and generate a return on investment for shareholders.

Funds Raised from Financing Activities Should Be Invested in Assets