Financing activities involve (select all that apply): a. lending money. b. acquiring long-lived...

Question:

Financing activities involve (select all that apply):

a. lending money.

b. acquiring long-lived assets.

c. acquiring investments.

d. issuing debt.

Cash Flows From Financing Activities:

Cash flows from financing activities refer to the amount of funds used by a company to finance its business. An example of a financing activity includes the issuing of debt or equity which will be reflected in the cash flow statement.

Answer and Explanation:

The correct answer is d. issuing debt

Explanation:

The other choices are not correct because they belong to other cash flow activities:

a. lending money (Investing)

b. acquiring long-lived assets. (Investing)

c. acquiring investments.(Investing)


Learn more about this topic:

Loading...
What Is Financing? - Definition & Types

from Corporate Finance: Help & Review

Chapter 8 / Lesson 7
115K

Related to this Question

Explore our homework questions and answers library