Transactions with the owners of a business or transactions with its creditors to borrow money or to repay the principal amounts of loans are called
A)Operating activities
B)Financing activities
C)Investing activities
D)Direct activities
E)Indirect activities

Question

Quizplus · Accepted Answer

Financing activities involve transactions with owners, such as issuing and repurchasing stock, as well as transactions with creditors, such as borrowing money and repaying loans. Operating activities involve transactions related to a company's primary operations, while investing activities involve buying or selling long-term assets or investments. Direct and indirect activities are not commonly used terms in accounting.

Transactions with the Owners of a Business or Transactions with Its