Which of the Following Is a Financing Activity

question 58

Multiple Choice

Which of the following is a financing activity?

• A)Collection of accounts receivable.
• B)Collection of loans receivable
• C)Receipt of bank loan.
• D)Sale of a machine.

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Definitions:

Factor Portfolio

Factor Portfolio refers to a collection of financial assets that is constructed to have specific common characteristics, often used in factor investing.

Security Mispricing

The phenomenon when a security (stock, bond, etc.) is priced above or below its intrinsic value.

Risk-Free

Pertaining to an investment with guaranteed returns and negligible risk of financial loss.

Economic Profits

Profits or losses calculated by considering both explicit costs, such as direct expenses, and implicit costs, like opportunity costs.