Obtaining Financing from Outside Investors Is Part of Which Cycle

question 41

Multiple Choice

Obtaining financing from outside investors is part of which cycle?

• A) the revenue cycle
• B) the financing cycle
• C) the production cycle
• D) the payroll cycle

---

Definitions:

Straight-Line Method

A method of calculating depreciation of an asset, which divides the difference between its cost and salvage value by the useful life of the asset.

Resale Value

The estimated value or price at which an asset or item can be sold again in the future.

Equipment

Tangible property used in operations, such as machinery, computer hardware, and vehicles.

Double-Declining-Balance

A method of accelerated depreciation where the book value of an asset is reduced at double the rate of its straight-line depreciation.