Transactions with the owners of a business or transactions with its creditors to borrow money or to repay the principal amounts of loans are called:
A) Indirect activities.
B) Financing activities.
C) Direct activities.
D) Investing activities.
E) Operating activities.

Question

Quizplus · Accepted Answer

Financing activities involve transactions with the owners and creditors of a business, such as borrowing money or repaying loans.

Transactions with the Owners of a Business or Transactions with Its