A corporation borrows $1,500,000 in cash from a bank to acquire a new building.This is an example of a(n).
A)operating activity
B)investing activity
C)financing activity
D)planning activity

Question

Quizplus · Accepted Answer

Borrowing money from a bank is considered a financing activity because it involves transactions designed to fund the company's operations and expansions, not its day-to-day operations or investments in long-term assets.

A Corporation Borrows $1,500,000 in Cash from a Bank to Acquire