Typical Financing Activities Do NOT Include the Following

question 16

Multiple Choice

Typical financing activities do NOT include the following:

• A) Proceeds from issuance of short- and long-term borrowings.
• B) Principal payments on short- and long-term borrowings.
• C) Purchase of shares for retirement.
• D) Purchase of short- or long-term investments for cash.

---

Definitions:

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Automobile Dealership

A business that sells new or used cars at the retail level, based on a dealership contract with an automaker.

Likely Used

Refers to items or methods that are commonly adopted or employed due to their effectiveness or efficiency.

Gross Profit

The amount by which sales revenue exceeds the cost of goods sold, prior to subtracting expenses such as overheads, payroll taxes, and interest.