Transactions of a Company Involving External Sources of Funding Are

question 109

Multiple Choice

Transactions of a company involving external sources of funding are referred to as:

• A)Investing activities.
• B)Financing activities.
• C)External activities.
• D)Operating activities.

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Definitions:

Quadruple

To increase or to be increased fourfold.

Annual Growth Rate

The year-over-year increase in value of an investment, expressed as a percentage.

Compounded Annually

An interest calculation method where the interest earned each year is added to the principal, and the following year's interest is based on this new principal amount.

Simple Interest

Interest determined purely on the original amount borrowed, or on the unpaid portion of that initial amount.