The typical business activity in the financing and investment cycle that requires an accounting entry is:
A)short- and long-term forecast.
B)meeting with investment bankers.
C)proposal to board of directors for investing excess monies.
D)investment of excess funds in temporary or long-term securities.

Question

Quizplus · Accepted Answer

When excess funds are invested in temporary or long-term securities, it requires an accounting entry to reflect the investment and track the return on investment. The other options mentioned (short- and long-term forecasts, meeting with investment bankers, proposal to board of directors) are part of the decision-making process in the financing and investment cycle, but do not necessarily require an accounting entry.

The Typical Business Activity in the Financing and Investment Cycle