Which of the following is a financing activity?
A)Payment of interest.
B)Payment of dividends.
C)Making sales on account.
D)Paying off accounts payable.

Question

Quizplus · Accepted Answer

Payment of dividends is a financing activity as it involves distributing profits to shareholders, which affects the company's financial position and capital structure. Options A, C, and D are all operating activities (payment/receipt of interest and accounts payable are related to day-to-day business operations).

Which of the Following Is a Financing Activity