Which Type of the Major Activities of a Business Are

question 48

Multiple Choice

Which type of the major activities of a business are best described as those events that are associated with the primary purpose of a business?

• A) Financing activities
• B) Operating activities
• C) Investing activities
• D) Earning activities

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Definitions:

Financing Activities

Transactions and events where cash is raised for, or repaid to, shareholders and creditors, typically including issuing and redeeming bonds, shares, and making loan repayments.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Future Economic Benefit

An advantage or profitable impact expected to be achieved in future periods from an asset.

Assets

Resources owned or controlled by a business that are expected to produce economic value.