Which of the following is a typical financing activity?
A)purchasing property,plant or equipment
B)purchasing another company's shares
C)paying interest expense
D)paying dividends

Question

Quizplus · Accepted Answer

Paying dividends is a typical financing activity as it involves distributing profits to shareholders, which is a form of financing through equity. Purchasing property, plant or equipment (A) is a typical investing activity, purchasing another company's shares (B) could be considered an investing or financing activity depending on the circumstances, and paying interest expense (C) is a typical operating activity.

Which of the Following Is a Typical Financing Activity