What Are Financing Activities

question 4

Multiple Choice

What are financing activities?

• A)Activities involving the acquisition and disposal of long-term assets.
• B)Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.
• C)Activities involving the principal revenue-producing activities of the entity.
• D)Activities that do not involve cash.

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Definitions:

Revenue Recognition

The accounting principle that dictates the specific conditions under which income becomes recognized as revenue and is reported in the financial statements.

Accounting Records

Documentation and books that contain the financial transactions and financial status of a company.

Services Rendered

Work or duties performed for a client, often resulting in payment for the service provider.

Incurred

Costs or expenses that have been realized or experienced by a business as part of its operations.