Transactions dealing with the exchange of cash between the firm and its owners (stockholders)and creditors are called:
A)planning activities.
B)financing activities.
C)investing activities.
D)operating activities.

Question

Quizplus · Accepted Answer

Financing activities include cash transactions related to the firm's owners (stockholders) and creditors. This includes issuing and repurchasing stock, issuing and retiring debt, and paying dividends to stockholders. Planning, investing, and operating activities involve other cash transactions related to the firm's operations and investments.

Transactions Dealing with the Exchange of Cash Between the Firm