The capital acquisition and repayment cycle does not include
A) payment of interest.
B) payment of dividends.
C) payment of vendor invoices.
D) acquisition of capital through interest-bearing debt.

Question

Quizplus · Accepted Answer

The capital acquisition and repayment cycle only includes activities related to the acquisition and repayment of capital. Payment of vendor invoices is an operational expense that does not relate to capital acquisition or repayment. Payment of interest and acquisition of capital through interest-bearing debt are part of the cycle, while payment of dividends is not directly part of the cycle but can be influenced by the availability of capital.

The Capital Acquisition and Repayment Cycle Does Not Include