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.

---

Definitions:

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Cash Dividend

A payout of cash from a company's profits to its stockholders.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Retained Earnings Statement

A financial statement that summarizes the changes in retained earnings for a specific period.