The Repayment of Debt Is

question 109

Multiple Choice

The repayment of debt is:

• A) an operating activity.
• B) an investing activity no matter how the money from the loan was allocated.
• C) a financing activity.
• D) an investing activity assuming the debt was used for the purchase of a fixed asset.

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Definitions:

Direct Costs

Costs that can be traced directly to a cost object.

Cost Object

Anything for which a separate measurement of cost is desired, including products, services, projects, or customers.

Indirect Costs

Costs that cannot be traced directly to a cost object.

Cost Object

Anything for which a separate measurement of costs is desired, such as products, services, projects, customers, or activities.