All of the Following Are Financing Activities Except

question 47

Multiple Choice

All of the following are financing activities except:

• A) Borrowing money
• B) Lending money
• C) Selling ordinary shares
• D) Paying dividends

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Definitions:

Future Value

The value of a current asset at a future date based on an assumed rate of growth.

Discount Periods

The time frame in which a discount is available for early payment of an invoice or debt.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Capital Investments

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to increase its long-term revenue.