Which of the Following Best Describe Financing Activities

question 120

Multiple Choice

Which of the following best describe financing activities?

• A)They primarily deal with securing money by bank loans or selling stock to investors.
• B)They primarily are connected to the income producing activities of the company as reported on the income statement.
• C)They primarily deal with buying and building facilities used over many years by the business.
• D)They primarily deal with selling facilities once used by the business.

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Return on Equity

A measure of the profitability of a business in relation to the equity, indicating how effectively equity is used to generate profits.

Total Stockholders' Equity

The total amount of funds contributed by investors and the accumulated earnings of a company, less any dividends paid.