A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n) :

A) Revenue activity.
B) Operating activity.
C) Expense activity.
D) Investing activity.
E) Financing activity.

Financing Activity

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Operating Activity

Transactions and events related to the primary operations of a business, such as selling products or services.

Revenue Activity

Activities undertaken by a business that result in the earning of income, typically from the sale of goods or provision of services.