Which of the Following Is a Typical Financing Activity

question 46

Multiple Choice

Which of the following is a typical financing activity?

• A)Payment of dividends
• B)Payment of interest expense
• C)Payment of wages
• D)Purchases of inventory

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Definitions:

Accounts Receivable

Payables to a company from clients for the use or delivery of goods or services, not yet reimbursed.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Mortgage Notes Payable

A liability represented by a legal document indicating the amount owed on a mortgage, including terms for repayment and interest rates.

Financing Activity

Transactions related to raising capital and repaying investors, including issuing equity, taking out loans, and distributing dividends.