Activities involving obtaining necessary funds to purchase long-term assets,repay existing obligations,and provide a return for owners are referred to as:
A)financing activities
B)operating activities
C)investing activities
D)planning activities

Question

Quizplus · Accepted Answer

Financing activities refer to the activities involved in obtaining necessary funds to purchase long-term assets, repay existing obligations, and provide a return for owners. These activities generally include issuing stocks and bonds, obtaining loans, and paying dividends or repurchasing stock. Operating activities refer to the day-to-day business operations of a company, including sales, purchases, and expenses. Investing activities refer to the acquisition and disposal of long-term assets such as property, plant, and equipment. Planning activities do not directly relate to obtaining necessary funds and are more of an overall strategic consideration for the company.

Activities Involving Obtaining Necessary Funds to Purchase Long-Term Assets,repay Existing