Lending Money and Collecting the Loans Are

question 37

Multiple Choice

Lending money and collecting the loans are

• A) operating activities.
• B) investing activities.
• C) financing activities.
• D) Non-cash investing and financing activities.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the net worth of the company to its shareholders.

Stock Split

An action by a company to divide its existing shares into multiple new shares to boost the stock's liquidity, although the overall value of the company remains unchanged.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Comprehensive Income

It encompasses all changes in equity during a period, except those resulting from investments by and distributions to owners.