Financing activities involve:
A) issuing debt.
B) acquiring long-term assets.
C) lending money.
D) acquiring investments.

Question

Quizplus · Accepted Answer

Financing activities primarily involve obtaining funds from external sources, which includes issuing debt.

Answer: B 
 Acquiring long-term assets is typically funded through financing activities, as it requires a significant amount of capital.

Answer: C 
 Lending money is typically considered an operating activity, as it pertains to the core operations of a business.

Answer: D 
 Acquiring investments is typically considered an investing activity, as it involves investing excess cash in securities or other assets.

Financing Activities Involve