The typical business activity in the financing and investment cycle that requires an accounting entry is

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When a company invests its excess funds in temporary or long-term securities, it has to account for this activity by making a financial entry in its accounting records. This entry will reflect the amount of funds invested, the type of security purchased, and the date of the transaction. This ensures that the company can track its investments and accurately report its financial position to stakeholders. The other choices listed are important activities in the financing and investment cycle, but they do not necessarily require an accounting entry.

The Typical Business Activity in the Financing and Investment Cycle