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 distribution of profits to shareholders and affects the company's cash flow. The other options given - purchasing property, plant or equipment, purchasing another company's shares, and paying interest expense - are typically classified as investing or operating activities.

Which of the Following Is a Typical Financing Activity