Which of the Following Would Normally Involve Long-Term Financing

question 219

Multiple Choice

Which of the following would normally involve long-term financing?

• A) workers' salaries
• B) unanticipated emergencies
• C) purchase of modern equipment
• D) expansion current inventory

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Definitions:

Operating Activities

The primary, day-to-day activities of a business that relate to its production, sales, and delivery of goods and services.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, representing the wear and tear on the asset over time.

Statement of Cash Flows

A document that provides insight into how alterations in balance sheet items and earnings affect cash and cash-like assets, dissecting the analysis into operating, investing, and financing divisions.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired and put into use.