Transactions of a company involving external sources of funding are referred to as:
A)Investing activities.
B)Financing activities.
C)External activities.

Question

Quizplus · Accepted Answer

Transactions that involve external sources of funding, such as issuing stocks, borrowing money, or repaying loans, are considered financing activities. Investing activities, on the other hand, refer to transactions involving the purchase or sale of long-term assets such as property, plant, and equipment, as well as investments in other companies. External activities is not a commonly used term in accounting and finance.

Transactions of a Company Involving External Sources of Funding Are