An Example of a Financing Activity Is

question 144

Multiple Choice

An example of a financing activity is:

• A) Buying office supplies.
• B) Buying land.
• C) Obtaining a long-term loan.
• D) Buying office equipment.
• E) Selling inventory.

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Definitions:

Investing Activities

Financial actions related to the purchase and sale of long-term assets and investments, which are reflected on the cash flow statement.

Operating Activities

Part of a company's cash flow statement that shows the cash generated or used by its core business operations.

Equity Method

An accounting technique used to reflect the investment in another company, typically applied when an investing entity holds significant influence over the investee.

Investee Earnings

The share of income that an investor recognizes from its investment in another entity.