Which of the following is a typical financing activity?
A)payment of dividends
B)payment of interest expense
C)payment of wages
D)purchases of inventory

Question

Quizplus · Accepted Answer

Payment of dividends is a typical financing activity as it involves distributing profits to the company's shareholders. Financing activities involve raising capital through equity or debt issuances, and distributing profits to shareholders falls under equity financing. The other options listed (B, C, and D) are all operational activities.

Which of the Following Is a Typical Financing Activity