Which of the Following Would Represent an Operating Activity

question 133

Multiple Choice

Which of the following would represent an operating activity?

• A)Purchasing equipment with money borrowed from creditors.
• B)An investment of financial capital by the owners.
• C)Buying the company's office supplies.
• D)Repaying a loan the company had taken out.

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Definitions:

Cosureties

Cosureties are multiple parties that collectively agree to be surety, sharing the liability and responsibility for fulfilling the principal's obligations.

Absolute Sureties

Individuals or entities that guarantee the performance of a debtor or contractual obligations without any conditions.

Financing Statement

A document filed by a creditor to indicate a security interest in the assets of a debtor, typically used in secured transactions.

Trade Name

The commercial name under which a business operates and is known to the public, distinct from the business's legal name.