Borrowing cash is ________ activity.

Question

Quizplus · Accepted Answer

Borrowing cash is a financing activity because it involves obtaining funds to finance the company's operations or investments. It is not considered an operating or investing activity because it does not relate to the day-to-day operations of the business or the acquisition or sale of long-term assets. While it does involve obtaining funds to invest, it is still primarily a financing activity as the primary purpose is to fund the business.

Borrowing Cash Is ________ Activity