Which of the following best describes financing activities?

A) They primarily deal with securing money by bank loans or selling stock to investors.
B) They primarily are connected to the income-producing activities of the company as reported on the income statement.
C) They primarily deal with buying buildings to be used over many years by the business.
D) They primarily deal with selling facilities once used by the business.

Question

Carrintyn Greene · Accepted Answer

Final Answer : A, Explanation :  Financing activities refer to activities that involve obtaining or repaying funds to finance the company's operations. This usually involves securing money through bank loans, issuing bonds or stock, or other methods of raising capital. Buying buildings or selling facilities may be part of investing activities, but it is not considered financing activities.

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