Which balance sheet accounts are most affected by financing activities?
A)Current assets
B)Current liabilities
C)Long-term assets
D)Long-term liabilities and stockholders' equity

Question

Quizplus · Accepted Answer

Financing activities involve obtaining funds from creditors and investors, which affects the long-term liabilities and stockholders' equity on the balance sheet. Current assets and current liabilities may be affected by operating activities, while long-term assets may be affected by investing activities.

Which Balance Sheet Accounts Are Most Affected by Financing Activities