An example of a financing activity is:
A) Buying office supplies.
B) Buying land.
C) Obtaining a long-term loan.
D) Buying office equipment.
E) Selling inventory.

Question

Quizplus · Accepted Answer

Obtaining a long-term loan is a financing activity as it involves receiving money in exchange for a promise to pay it back with interest over a specific period of time. This is a common way for companies to raise funds for investments or expenses. The other choices are all examples of operating or investing activities.

An Example of a Financing Activity Is