Which of the Following Would $\bold{not}$ Represent a Financing Activity?
A)Paying Dividends to Shareholders

question 45

Multiple Choice

Which of the following would $\bold{not}$ represent a financing activity?

• A)Paying dividends to shareholders.
• B)An investment of financial capital by the owners.
• C)Borrowing money from a bank to finance the purchase of new equipment.
• D)Collecting cash from customers.

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Definitions:

Operating Revenues

Income generated from the core business activities of an entity excluding non-operating income sources.

Remeasurement

The process of converting foreign currency amounts into a functional currency using exchange rates that reflect changes in market conditions.

Translation

The process of converting the financial statements of a foreign subsidiary into the reporting currency of the parent company, according to appropriate accounting standards.

Purpose

The underlying motive or reason for the creation or existence of something.