An Example of a Financing Activity Is

question 107

Multiple Choice

An example of a financing activity is

• A) the sale of merchandise for cash.
• B) the issue of stock for cash.
• C) the sale of used equipment for cash.
• D) the purchase of a building.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders’ equity at a specific point in time, providing a snapshot of the firm's financial condition.

Direct Method

A technique used in cash flow statements to show actual cash inflows and outflows from operating activities, as opposed to the indirect method.

Accounts Receivable

The funds that a company's customers have yet to pay for products or services they have received but have not settled the bill for.

Sales Revenue

Income received from selling goods and services over a period of time.