Which of the Following Is an Example of a Financing

question 141

Multiple Choice

Which of the following is an example of a financing activity?

• A) Employing workers
• B) Selling equipment
• C) Paying off a loan
• D) Purchasing land

---

Definitions:

Nonmonetary Exchange

A transaction in which businesses or individuals trade goods or services without the use of money.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of a company's profits and a right to vote on management issues.

Stock Split

An action a company takes to divide its existing stock into multiple shares to boost the liquidity of the shares.

Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the current value assigned by the market.